South Sumatra
Indonesia's coal heartland—22.24B tons (48.5% of national reserves); oil since 1896, 8.8M population, 29.3% of coal reserves powering 61% of national electricity.
Oil was discovered in South Sumatra in 1896. Colonial Indonesia became one of the world's first oil regions, and that fossil-fueled path shaped the nation's trajectory. Today the province holds 22.24 billion tons of coal—48.45% of national reserves—plus petroleum and natural gas deposits that have been extracted for over a century. Indonesia exported a record 615 million short tons of coal in 2024, with South Sumatra providing 29.3% of national reserves, second only to East Kalimantan.
Palembang, the provincial capital of 8.8 million, sits atop the Palembang sub-basin where oil and gas were first found in basement rock in 1913. Five sectors drive growth: processing, mining, agriculture, construction, and trade, with the Tanjung Api-Api Special Economic Zone positioned to capture downstream industries. More than 61% of Indonesia's electricity in 2023 came from coal—the fuel South Sumatra supplies.
By 2026, coal's role may shift but won't disappear. Indonesia's coal exports grew 7.7% in 2024; the 2025 production target is 810 million short tons. The Oil, Gas & Coal sector saw a 47% market cap increase over 12 months through 2025. South Sumatra's economy remains hostage to a commodity whose global demand may peak—or may not—depending on how fast Asian economies decarbonize.