Province

South Sumatra

Overview Economy

South Sumatra, the province divided by Musi river

Sumatra Island’s eastern coast is home to South Sumatra, a province of 8.89 million people as of 2023. The province’s capital city is Palembang, a city that serves as a blend of modernity and tradition, thereby contributing to South Sumatra’s presence as a cultural melting pot where traditions and customs rooted in Java, Palembang, and Malay culture exert a significant influence. Additionally, the province’s local cuisine reflects this diversity, featuring spicy and savory meals as staples.

Furthermore, a highlight of South Sumatra's cultural legacy is the annual Sriwijaya Festival, which honors the historical Sriwijaya Kingdom that once flourished in the area. The festival showcases the province’s rich cultural diversity through traditional performances, art exhibitions, and gastronomic events.

With a varied terrain that includes mountains, forests, and plains, South Sumatra’s natural landscape notably is cut by numerous rivers, among them the Musi River, which plays an essential role in the region’s agricultural and transportation networks. Particularly, the Ampera Bridge spans the Musi River, further contributing to the region’s connectivity and infrastructure.

Moreover, South Sumatra’s vast landscape supports a wide variety of plants and animals. These include the critically endangered Sumatran tiger and rhinoceros, housed in the UNESCO World Heritage site of Bukit Barisan Selatan National along with a variety of other animals.

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Economic landscape

South Sumatra’s economy, as of 2023, is reflected in a Gross Regional Domestic Product (GRDP) of Rp 360 trillion. Driving this GRDP are several sectors, with the mining sector leading with a contribution of 26.61 percent, followed by the processing industry sector, and the agriculture, forestry, and fishery sector.

Moreover, the province contributes significantly to the country's palm oil industry due to its vast plantations. Additionally, natural resources such as coal and rubber contribute significantly to both the national and local economies.

In 2023, South Sumatra province attracted Rp 36.80 trillion in investment up to the third quarter of the year. During this period, both domestic and foreign investments were nearly identical, with Rp 18.67 trillion and Rp 18.12 trillion, respectively. Among international sources of investment, Singaporean businesses led the way with Rp 12.19 trillion, followed by China at Rp 2.63 trillion, Hongkong at Rp 1.67 trillion, Japan at Rp 665 billion, and Malaysia at Rp 319 billion.

Five major sectors enjoyed investment in South Sumatra during that period, namely the paper and printing industry with Rp 10.81 trillion in investments, the mining industry at Rp 5.61 trillion, the energy industry at Rp 4.67 trillion, the food industry at Rp 3.43 trillion, and the transportation, warehousing, and telecommunication industry at Rp 3.04 trillion.

To sustain the flow of investment into the province, South Sumatra is supported by the Trans-Sumatra Highway, connecting the province to Lampung. Notably, the Palembang-Lampung route reduces travel time from 10-12 hours to only 3.5 hours. Significant investments have been made in this highway, including the Indralaya-Pramubulih route, which received an investment of Rp 12.5 trillion.

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Latest News

August 26, 2025

Clear skies encompass the Indonesian Independence Day celebrations in Palembang City, South Sumatra Province on Aug. 17, 2025. The Musi River once again became a stage for tradition. Thousands of residents crowded the banks, joining in cheers for the long-awaited Bidar and Decorated Boat Competition.

From upstream to downstream, the roaring sound came not from the river's current, but from the beating of the oars by bidar rowers. The traditional South Sumatran fast boats advanced like arrows.

Meanwhile, the decorated boats sailed gracefully. They display cultural symbols, namely limas houses, songket cloth, and golden dragons that swayed majestically on the water.

Palembang Mayor Ratu Dewa, who was present at the 2025 Traditional Bidar Boat Festival, witnessed the fierce competitions for the respective championships of the bidar race and decorated boat parade.

Each team represented their respective regional government organizations, region-owned enterprises (BUMD), as well as representatives of regencies and cities in South Sumatra Province.

"The Musi River is not only a source of life, but also a source of culture. The Bidar Festival is our heritage, and I am committed to making it a bigger annual event," said Dewa.

In the past, bidar were used by the troops of the Palembang Darussalam Sultanate as part of the kingdom's river fleet. Now, bidar is an annual event that unites residents from all over the city, even those living along the banks of the Musi River.

Each bidar boat, which could reach 40 meters in length, is manned by 42 rowers who move in unison. The colorful boats adorn the river, while spectators crowd the Ampera Bridge and the banks of Kuto Besak Fort, creating an unforgettable atmosphere.

The Palembang City Government and the Tourism Ministry are committed to elevating bidar to the world stage. The festival is included in the ministry's Karisma Event Nusantara 2025 calendar of cultural festivals.

"This isn't just about speed, but [also] about heritage. The world needs to know that the Musi River story," said Ratu.

At the occasion, South Sumatra Governor Herman Deru expressed his appreciation to Ratu. He considered the festival successful in elevating local traditions to the global stage.

"This festival isn't just about sports and entertainment, but also a symbol of South Sumatra's cultural pride. Cultural heritage can be packaged attractively and simultaneously boost the region's tourism image," Herman concluded.

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