Palembang, city, western Indonesia, capital of South Sumatra Province, southeastern Sumatra, a port on the Musi River. Palembang is a trade center for the surrounding oil- and rubber-producing area, with several refineries nearby. Shipyards and iron foundries are in the city, as is Sriwijaya University (1960). Palembang was the capital of the Hindu-Sumatran 8th-century kingdom of Sri Vijaya. Population (1997 estimate) 1,436,500.