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

September 17, 2025

The Karang Asam Festival in South Tanjung Enim Village Square, Lawang Kidul District, Muara Enim Regency, South Sumatra Province has been included in the Tourism Ministry's Karisma Event Nusantara (KEN) calendar of cultural festivals for 2025.

Various local traditions, such as the Mandi Kupek to the Ayek custom, are once again showcased at the festival—which was held until Sep. 7, 2025.

In addition to serving as a space for cultural preservation, the festival also provides a platform for local artists to showcase their work. Dance performances, traditional music, and Muara Enim Regency's unique cultural attractions are presented in an interesting format to draw tourists.

"Culture is our identity. We must preserve and respect local wisdom so that future generations will continue to know it," said South Sumatra Governor Herman Deru.

Herman expressed his utmost appreciation for the festival, as the governor attended to witness the grandeur of the event firsthand.

"I want to see for myself how this festival has grown from the village level to become a KEN event. This is proof that our culture has national appeal," he stated.

Herman added that Karang Asam Festival's inclusion in KEN 2025 is a recognition that local activities can be nationally competitive.

"For me, this is an extraordinary achievement. Let's continue to maintain and develop it together," he emphasized.

Tourism Ministry Assistant Deputy Regional Events Reza Fahlevi also expressed his appreciation. He called the Karang Asam Festival one of the best cultural events in Indonesia.

"This event belongs not only to Muara Enim, but also to the nation. Therefore, the central government fully supports it so that it continues to develop," he said.

Muara Enim Regent Edison added that the festival was born from the initiative of residents who want to preserve culture through creative and professional means. He also hopes this event will become a cultural icon of Muara Enim.

"This festival is a reflection of community togetherness. Culture, art, and the economy are combined into one strength [of the local region]," he concluded.

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