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.

Show more

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.

Show more

Latest News

July 21, 2025

Realized investments to South Sumatra Province reached Rp13.72 trillion in the first quarter (Q1) of 2025, a 3.04 percent year-on-year (yoy) decline, or around Rp420 billion, compared to the Rp14.4 trillion recorded during Q1 2024.

"Investment realization reached Rp13.72 trillion in the first quarter, or 32.26 percent of the South Sumatra Regional Medium-Term Development Plan (RPJMD) target of Rp42.5 trillion," said Acting South Sumatra Investment and One-Stop Integrated Services Agency (DPMPTSP) Secretary Eko Agusrianto.

He stated that domestic investments accounted for the most with Rp9.84 trillion, while foreign investments reached Rp3.88 trillion. Eko stated that the largest sector contributing towards total investments to South Sumatra in Q1 2025 was mining, which reached Rp3.42 trillion. It was followed by the electricity, gas, and water sector with Rp1.61 trillion, the chemical and pharmaceutical manufacturing sector with Rp1.59 trillion, the paper and printing sector with Rp1.52 trillion, and the food crops, plantations, and livestock sector with Rp1.4 trillion.

"For foreign investments, the dominant countries of origin were Singapore with Rp1.65 trillion, China with Rp1.17 trillion, Malaysia with Rp496 billion, the United Kingdom with Rp166 billion, and Japan with Rp123 billion," Eko revealed.

The realized investments created jobs for 15,810 people in Q1 2025, doubling the 8,233 jobs created in Q1 2024. Meanwhile, Eko was optimistic that South Sumata's investment target in the RPJMD could be achieved this year. He also urged business actors to submit their investment activity reports (LKPM) on time so they could be recorded by his office.

Read more
June 23, 2025
May 19, 2025
May 5, 2025
April 15, 2025
March 25, 2025
March 14, 2025
February 28, 2025
February 17, 2025
Load more