Positive Performance of South Sumatra’s Trade Balance

Press Release

B-441/16000/HM.240/2025

Positive Performance of South Sumatra’s Trade Balance

Palembang (1/9) – South Sumatra’s exports from January to July 2025 were recorded at US$3.7 billion, an increase of 3.66 percent compared to the same period in 2024. Exports were dominated by non-oil and gas commodities amounting to US$3.47 billion (93.95 percent), while oil and gas commodities contributed US$223.77 million (6.05 percent). Oil and gas exports declined by 20.54 percent, whereas non-oil and gas exports grew by 5.73 percent.

The increase in non-oil and gas exports was mainly driven by the manufacturing sector (up 16.27 percent) and the agriculture sector (up 102.33 percent). Commodities contributing the most to the export growth during January–July 2025 were rubber and rubber products (up 31.98 percent) and wood pulp (up 8.56 percent) compared to the same period in 2024.

The top three export destinations of South Sumatra were China, India, and Vietnam. China remained the largest market, with an export value of US$1.41 billion (38.09 percent of total exports), dominated by commodities such as wood pulp, coal and lignite, and rubber and rubber products.

On the import side, South Sumatra’s imports from January to July 2025 amounted to US$610.50 million, a decrease of 54.67 percent compared to the same period of the previous year. Imports were dominated by non-oil and gas commodities worth US$604.58 million (99.03 percent), while oil and gas imports accounted for US$5.92 million (0.97 percent). Oil and gas imports fell by 55.64 percent, and non-oil and gas imports fell by 54.66 percent.

By usage category, import declines occurred across all groups: consumer goods (down 83.06 percent), capital goods (down 60.18 percent), and raw materials/intermediary goods (down 41.75 percent). The commodity contributing most to the decline in non-oil and gas imports was machinery and equipment, which fell by 63.44 percent.

The top three countries of origin for imports were China, Vietnam, and Malaysia. China remained the largest source, contributing US$336.64 million (55.14 percent of total imports), with major commodities being mechanical machinery and equipment, electrical machinery, and vehicles and accessories.

As a result, South Sumatra’s trade balance during January–July 2025 recorded a surplus of US$3.08 billion, consisting of a surplus in oil and gas commodities of US$217.85 million and a surplus in non-oil and gas commodities of US$2.87 billion.

Deflation in August 2025

Statistics Indonesia (BPS) South Sumatra Province recorded a deflation of 0.04 percent (mto-m) in August 2025. “The Consumer Price Index (CPI) decreased from 109.17 in July 2025 to 109.13 in August 2025,” explained the Head of BPS South Sumatra Province, Wahyu Yulianto.

This condition differs from August 2024, which recorded a deflation of 0.19 percent. On a year-on-year basis, inflation stood at 3.04 percent, while on a calendar year basis inflation was recorded at 1.98 percent.

The largest contributor to the monthly deflation was the food, beverages, and tobacco group, which recorded a deflation of 0.24 percent with a contribution of 0.08 percent. Key commodities were broiler chicken meat, tomatoes, bird’s eye chili, and rice. The transport group also recorded a deflation of 0.23 percent (contribution of 0.04 percent), mainly driven by a decline in airfares. Conversely, the personal care and other services group recorded the highest inflation of 0.44 percent (contribution of 0.04 percent), mainly driven by higher prices of gold jewelry.

On a year-on-year basis, the group contributing the highest inflation was personal care and other services (14.10 percent; contribution of 1.06 percent), with gold jewelry as the main commodity. The food, beverages, and tobacco group recorded an inflation of 5.13 percent (contribution of 1.54 percent), driven by shallots, rice, and tomatoes. The housing, water, electricity, and household fuel group experienced inflation of 1.19 percent (contribution of 0.17 percent), mainly due to household fuel.

By region, Ogan Komering Ilir Regency and Palembang City recorded deflation of 0.11 percent and 0.07 percent, respectively. Meanwhile, Muara Enim Regency and Lubuklinggau City recorded inflation of 0.22 percent and 0.07 percent, respectively.

Farmers’ Terms of Trade (NTP) Increased

The Farmers’ Terms of Trade (NTP) in South Sumatra in August 2025 reached 122.19, an increase of 1.40 percent compared to July 2025. “This increase occurred because the Farmers’ Received Price Index (It) rose more rapidly, by 1.59 percent, compared to the Farmers’ Paid Price Index (Ib), which rose by only 0.18 percent,” explained Wahyu.

The increase in NTP was driven by the food crops subsector (up 1.03 percent), horticulture (up 1.29 percent), and plantation crops (up 1.59 percent), supported by commodities such as unhusked rice, maize, rubber, coffee, and oil palm.

In August 2025, the Household Consumption Index (IKRT) of South Sumatra also rose by 0.23 percent, from 128.23 to 128.52. Meanwhile, the Household Farming Business Terms of Trade (NTUP) increased by 1.60 percent, from 124.20 to 126.18.

Increase in Domestic Tourist Trips

The number of domestic tourist (wisnus) trips to South Sumatra in July 2025 reached 2.23 million trips, an increase of 70.64 percent compared to July 2024 (1.31 million trips). Of these, 77.02 percent (1.72 million trips) were intra-provincial trips (within districts/cities in the province), while 22.98 percent (513.46 thousand trips) were inter-provincial trips.

“Cumulatively, from January to July 2025, the number of domestic tourist trips reached 15.55 million trips, an increase of 57.33 percent compared to the same period in 2024,” stated Wahyu.

Another tourism indicator recently released was foreign tourist (wisman) visits. Since April 2024, SMB II Airport Palembang changed status from an international airport to a domestic airport. However, based on the Decree of the Minister of Transportation of the Republic of Indonesia Number KM 26 of 2025, the airport regained its international status in April 2025. International flights resumed in July 2025, with 204 foreign tourist visits, dominated by Malaysia (47.06 percent) and China (18.14 percent).

Meanwhile, the Hotel Occupancy Rate (TPK) of star-rated hotels in July 2025 was recorded at 48.54 percent, a decrease of 3.76 percentage points compared to July 2024 (52.30 percent).

Increase in Transport Passengers

The number of transport passengers in South Sumatra in July 2025 increased for air, sea, and LRT transport modes, while railway passengers experienced a decline. This condition was influenced by the school holiday period, the opening of the new Palembang–Kuala Lumpur flight route, the return of the last hajj pilgrim groups, and the resumption of umrah activities in 1447H.

Air transport: passengers increased by 6.12 percent (m-to-m), but cumulatively January– July 2025 decreased by 2.22 percent compared to the same period in 2024.

Sea transport: passengers increased by 24.85 percent (m-to-m) and cumulatively by 6.59 percent.

LRT: passengers increased by 1.47 percent (m-to-m) and cumulatively by 9.53 percent. Railway: passengers decreased by 5.70 percent (m-to-m), although cumulatively they increased by 7.57 percent compared to the same period of the previous year.

Furthermore, the volume of loading and unloading of goods in domestic and international sea transport showed an increase of 32.85 percent (m-to-m) or 8.91 percent (y-o-y). The volume of goods loaded increased by 31.43 percent (m-to-m) or 37.80 percent (y-o-y), while the volume of goods unloaded increased by 35.11 percent (m-to-m) but decreased by 17.78 percent (y-o-y).

Media Contact Person

Nugraha Pukuh

Badan Pusat Statistik Provinsi Sumatera Selatan

[email protected]