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

October 11, 2024

The Indonesian Quarantine Agency (Barantin)'s South Sumatra Province Animal, Fish, and Plant Quarantine Station, or South Sumatra Quarantine, oversaw the export of 19.8 tons Pagar Alam coffee beans to Malaysia worth Rp1.54 billion.

"This coffee export is the first shipment of Pagar Alam coffee to Malaysia, and the first time coffee has been exported through the Boom Baru Port in Palembang City after its hiatus in the past few years," South Sumatra Quarantine Head Kostan Manalu revealed on Sep. 17, 2024.

Kostan stated that the export is an important step for the introduction of robusta coffee beans from Pagar Alam City to the Malaysian market as well as the export of coffee beans directly from its province of origin, namely South Sumatra.

"We strongly support the export of these coffee beans, and through strict inspections, we hope that coffee from Pagar Alam can be well received in Malaysia, and open up opportunities for sustained exports in the future," he said.

Kostan hopes that the coffee export can strengthen South Sumatra's position as one of the leading coffee producers in the international market.

"South Sumatra Quarantine is committed to supporting the export of superior commodities by ensuring that all exported products meet international quality standards," he said.

In addition to the Pagar Alam robusta coffee's shipment to Malaysia, South Sumatra also sent 0.5 kilograms (kg) of coffee bean samples to Germany based on South Sumatra Quarantine data.

Previously, South Sumatra exported 11.9 kilograms of coffee beans to Japan, Poland, and Taiwan in 2022. Then in 2023, 4 kilograms of coffee beans were sent to England, Egypt, and Saudi Arabia. In addition, 60 kilograms of ground coffee were also exported to Malaysia and Jordan that year.

"There is a tendency for coffee from South Sumatra to be in demand by the international market. South Sumatra Quarantine is ready to provide full support to farmers and exporters by assisting in fulfilling requirements so that coffee quality is maintained, the hope is that more and more South Sumatra coffee will be sent to other countries," he concluded.

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