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

May 19, 2025

The 33rd Sriwijaya Festival in Palembang City, South Sumatra Province presents various interesting activities such as a traditional dance and music performance named after the festival's theme, micro, small, and medium enterprise (MSME) exhibitions, culinary stands, band performances, as well as photography and videography competitions.

The festival, which is being held on May 16-18, 2025, to commemorate South Sumatra's 79th Anniversary, has "The Glory of Sriwijaya" as its theme. is included in the Tourism Ministry's (KEN) cultural festivals calendar, 

Tourism Ministry Regional Events Assistant Deputy Reza Pahlevi stated that Sriwijaya Festival 2025 and two other events in South Sumatra that have been included in the ministry's Karisma Event Nusantara cultural festival calendar, namely the Bidar Competition and the Karangasem Festival in Muara Enim, are strategic steps to attract tourists to South Sumatra.

"This event involves many parties, from artists, MSMEs, to exhibition [business] actors," said Reza.

Meanwhile, South Sumatra Governor Herman Deru said that Sriwijaya Festival 2025 is an important occasion to remind of Sriwijaya Kingdom's historical importance to South Sumatra, as well as the diversity of arts and culture that should be preserved. He hopes that more students, as the succeeding generation, will be involved in preserving regional culture.

"South Sumatra not only has the Sriwijaya Festival, but there are also other events such as the Sriwijaya Dempo Run and Sriwijaya Grand Fondo in Ranau which I hope can also be included in the national event calendar," he said.

The 33rd Sriwijaya Festival is targeted to be able to generate up to Rp5 billion of transaction value in three days. South Sumatra Culture and Tourism Office Tourism Marketing Division Sido Santoso stated that the public's transaction value reached Rp3 billion at Sriwijaya Festival 2024.

"We are targeting Rp5 billion of transaction value during the Sriwijaya Festival  this year ecause we know that the people (of South Sumatra) are hungry for entertainment," said Sido on May 16, 2025.

The festival's opening performance at the People's Strugge Monument in Palembang City, South Sumatra, which commemorates the city's defense amid the second Dutch invasion of the Republic of Indonesia, was seen crowded with visitors with MSME stands were lined up with many culinary snacks.

Read more
May 5, 2025
April 15, 2025
March 25, 2025
March 14, 2025
February 28, 2025
February 17, 2025
February 12, 2025
January 15, 2025
Load more