Palembang, The Indonesia Post — The economy of South Sumatra Province (Sumsel) is projected to grow by 5.42 percent throughout 2025, with the Micro, Small, and Medium Enterprises (MSMEs) sector being the main driver of this growth.
This was conveyed by the Governor of South Sumatra, Herman Deru, when opening the 2025 Sriwijaya MSME Festival at Palembang Indah Mall, Saturday (25/10/2025).
“The 5.42 percent figure is not just a statistic, but concrete evidence of the hard work of MSMEs who continue to innovate and struggle amidst economic challenges,” said Herman Deru.
He emphasized that inclusive economic growth can only be achieved if the MSME sector is strengthened. “The stronger the MSMEs, the more equitable the economic benefits will be for all levels of society,” he added.
Data from the South Sumatra Cooperatives and SMEs Office indicates that there are 1.7 million MSMEs across 17 regencies and cities. Of these, 1.1 million operate in the agricultural sector, while the remainder are in trade, culinary arts, and the creative industries.
However, MSMEs still face a number of challenges, such as limited capital, market access, and the ability to adapt to digitalization. The South Sumatra Provincial Government is committed to strengthening cross-sector collaboration to overcome these obstacles.
The Head of the Bank Indonesia Representative Office in South Sumatra, Bambang Pramono , believes that synergy between the government, banks, and businesses is key to the success of MSMEs.
“BI is ready to support the strengthening of MSMEs through training, digitalization, and broader and more inclusive access to financing,” he said.
Bambang also hopes that South Sumatra’s MSMEs will not only be able to dominate the local market, but also be able to compete in the national and global markets.
As a concrete form of support, the South Sumatra Provincial Government, in collaboration with Bank Indonesia, held the 2025 Sriwijaya MSME Festival , showcasing superior regional products and providing a business networking and promotional platform for MSMEs. (mhn/ril)
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