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

June 23, 2025

Musi Banyuasin Regent M. Toha Tohet received a visit by an Intervenții Active în Atmosferă (IAA) business delegation from Romania, which includes Honorary Consul of the Republic of Indonesia in Constanta Emil Sirbu, at the Griya Bumi Serasan Sekate Guest House in Musi Banyuasin Regency, South Sumatra Province on Jun. 13, 2025.

During the meeting, Toha emphasized the Musi Banyuasin Regency Government's commitment to open up investment opportunities as expansively as possible in line with the regency's Development Vision 2025-2030. He stated that the visit is an initial step to build real cooperation in various strategic sectors.

Toha explained that the three priority sectors offered to investors include the utilization of Prince Abdul Hamid Sekayu Airport as a Puma helicopter maintenance center for Southeast Asia, investment in cross-bred buffalo farming with European bison, development of innovative drinking water processing.

"For us, this is not an ordinary visit. This is the door to real collaboration that brings added value to the region and the local community," he said in his speech.

Toha added that Musi Banyuasin Regency also opens up investment opportunities in the downstream industries of leading regional commodities such as palm oil, rubber, and renewable energy (renewables) development.

Sirbu, who is also IAA's Chief Executive Officer, expressed his admiration for Musi Banyuasin Regency's readiness for investment, as the region is considered to fulfill many of the prerequisites to become a strategic partner in technological and industrial development.

"We see Musi Banyuasin not just as a market, but as a long-term partner in the development of leading sectors such as weather modification, pharmaceuticals, hospital management, agro-industry, and renewables," he stated.

Also present at the meeting were Musi Banyuasin Regency Government officials; Indonesian Embassy in Romania representatives, including Martin Soeprijadi Diaw; as well as Romanian career diplomat Dumitru Tanasa.

Regent Toha hopes that the follow-up to the meeting could be realized immediately in the form of realized investment, which is expected to accelerate the transformation of Musi Banyuasin's economy towards self-sufficiency and sustainability for its people.

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