page_title: South Sumatra
section_title: Economy
hierarchical_section_title: South Sumatra / Economy
caption_attribution_description: Nederlands: Schoolplaat. De rivier de Musi bij Palembang
context_page_description: South Sumatra is a province of Indonesia. It is located on the southeast of the island of Sumatra, The province spans 91,592.43 km² and an estimated population of 8,497,196. The capital of the province is Palembang. The province borders the provinces of Jambi to the north, Bengkulu to the west and Lampung to the south. The Bangka Strait in the east separates South Sumatra and the island of Bangka, which is part of the Bangka Belitung Islands province. This province is rich in natural resources, such as petroleum, natural gas and coal. The province is inhabited by many different ethnic groups, with the Malays the largest ethnic group. Most speak Palembang Malay, which is mutually unintelligible to both Indonesian and Standard Malay. Other ethnic groups include the Javanese, Sundanese, Minangkabau and Chinese. Most are concentrated in urban areas and are largely immigrants from other parts of Indonesia.
  From the 7th century to the late 14th century, the province was the seat of the Buddhist Srivijaya Empire, which influenced much of Southeast Asia. Srivijaya was an important centre for the expansion of Buddhism from the 8th to the 12th century.
context_section_description: There are five sectors that support economic growth in South Sumatra, such as the processing industry, mining, agriculture, construction, and large and retail trade, and the development of the Tanjung Api-Api Special Economic Zones (KEK), South Sumatra's economic growth is also supported by tourism.
  The coal deposits of South Sumatra amount to 22.24 billion tons or 48.45 percent of the total national reserves. The province also has 4.18 trillion standard cubic feet of natural gas and 757.4 standard cubic feet of natural oil.
  However, the agricultural sector is still the cornerstone of employment in South Sumatra compared to other sectors with absorption reaching 1.9 million people. This figure is in accordance with the potential of the area which has an area of around 774 thousand hectares of agriculture. The potential of agricultural resources in South Sumatra is quite prominent with annual production of rice reaching 4.2 million tons, corn production reaching 289 thousand tons, soybeans production reaching 16 thousand tons, palm oil production reaching 2.718 million tons, coffee (dry beans) production reaching 135.2 thousand tons, coconut production reaching 65 thousand tons. In addition to the agricultural sector, the other two sectors also absorb labor, namely the large and retail trade sector, car and motorcycle repair and the processing industry. In the trade sector there are 688,000 workers, and the processing industry reaches 279,300 people.
  The economy of South Sumatra in the second quarter of 2017 continued to show improvement compared to previous quarters. The realization of economic growth in South Sumatra in the second quarter of 2017 was 5.24% (YoY), higher than the first quarter of 2017 of 5.13% (YoY). From the demand side, the component of foreign exports is still the main pillar of economic growth. This was mainly supported by improvements in the prices of superior commodities in South Sumatra, namely rubber and coal. In addition, export performance was driven by improvements in the economic conditions of the main destination countries for South Sumatra's exports, including the United States, China and Europe. On the other hand, an increase in export performance has no impact on increasing household consumption. The slowdown in household consumption is estimated to be caused by the consumption pattern of people experiencing a shift. The community began to reduce tertiary needs reflected in the decline in the consumption index of durable goods. Meanwhile, in the second quarter of 2017 government consumption declined due to some government projects still in the auction stage.
caption: A painting depicting fishing boats on the Musi River (Indonesia)
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