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Business and industry

Palembang is the regional business centre in southern Sumatra region encompassing Jambi, South Sumatra, Bengkulu, Bangka Belitung Islands and Lampung. Several main factories and industries in Indonesia are operating in Palembang such as fertiliser factory of Pupuk Sriwidjaja Palembang in Sei Selayur, portland cement factory of Baturaja Portland Cement in Kertapati and oil and gas refinery of Pertamina in Plaju. Several coal mining industries in South Sumatra also transport coal to the city by freight trains and by trucks before being shipped to Java or abroad.

In Indonesia, South Sumatra is the largest producer of rubber, estimated at over 940,000 tons of production in 2016, and over 850,000 tons of rubber were exported from Palembang in the same year. In 2014, there were 14 rubber processing factories in the city employing 4,000 people with a capacity of close to a million tons annually. There is however no specified industrial parks in the city.

At least 10,683 foreign tourists and 1,896,110 domestic tourists visited the city in 2016. Several hotels are operating in Palembang, many of them are opened after the 2004 Pekan Olahraga Nasional. Culinary business in Palembang is also developing. A ton of pempek is exported from Palembang to other cities in Indonesia and abroad daily.