Colonial era

Long before Indonesia's independence, in 1920, the land that now houses Sultan Mahmud Badaruddin II Airport was an empty plot, once part of a native plantation. At that time, the Dutch East Indies government acquired the land through the Palembang Maatschappij. Around the same period, a Dutch pilot was reported to be flying to Indonesia and intended to land in Palembang. The former plantation land was then transformed into the city's first airfield, known as Talang Betutu Airfield. The Dutch pilot, Jan Pieterszoon, subsequently landed a small Fokker plane from Europe in Palembang.

The airport played a crucial role in the war efforts during World War II. In January 1942, the American-British-Dutch-Australian Command (ABDACOM) decided to consolidate Allied air forces in Sumatra, establishing two key airfields near Palembang: Pangkalan Benteng, also known as 'P1' (the current airport), and a secret airbase at Prabumulih (then Praboemoelih), referred to as 'P2'. The airport was a significant strategic asset for both the Allies and the Japanese, who considered it a primary target alongside the Royal Dutch Shell oil refineries at Pladju (Pladjoe), located just miles from Palembang. The Japanese viewed the airport as essential for reinforcing and resupplying their forces, and as a base for further advancing into northern Sumatra and Java.

In February 1942, during the Battle of Palembang, Japanese forces captured the airfield as part of their broader invasion of the Dutch East Indies. The Royal Netherlands East Indies Army (KNIL) defenders in Palembang were relatively weak. Commanded by Lieutenant Colonel N.W. Vogelsang, they numbered only around 2,000 personnel, including a single battalion stationed at Talang Betutu Airfield. Their primary objective was to secure the two strategically vital oil refineries at Pladju and Sungai Gerong, owned respectively by BPM and Stanvac. However, only about 300 KNIL troops were actually deployed within Palembang itself. Japanese fighter aircraft repeatedly bombed Talang Betutu airfield, while coordinated assaults were launched by land and naval forces. Paratroopers under Colonel Seiichi Kume were deployed to seize key targets, including Talang Betutu airfield and the oil refineries. Approximately 180 paratroopers were assigned to capture the airfield, with a further 90 tasked with securing the refineries at Plaju and Sungai Gerong. Meanwhile, the KNIL Manado Battalion, originally stationed in Prabumulih, was redeployed to reinforce the defense of the oil installations. Despite these efforts, the Japanese assault—executed rapidly and in coordination across air, land, and sea—overwhelmed the outnumbered and dispersed KNIL forces, leaving them unable to mount effective resistance.

Following the takeover of the airfield, the Imperial Japanese Army undertook reconstruction works between 1942 and 1943, including extending the runway. These efforts relied in part on Allied prisoners of war, who were subjected to harsh and inhumane treatment by their captors. Throughout the remainder of the war, the airfield was frequently targeted by Allied aircraft.

After the Japanese surrender in 1945, control of the airfield was handed over to the returning Dutch authorities. It subsequently became a Dutch stronghold during the Indonesian National Revolution and served as a major supply base for Dutch forces in Palembang. In 1947, during clashes between Dutch forces and Indonesian fighters, Indonesian forces sought to capture or neutralize the airfield. Indonesian fighters harassed Dutch forces at the airfield in an effort to disrupt reinforcements and prevent supplies from reaching Palembang.

Independence era

On 1 January 1950, following Dutch recognition of Indonesia’s sovereignty, Dutch forces withdrew from the airfield. It was subsequently opened by the Indonesian authorities for civilian use as Talang Betutu Airport, serving as a gateway to the region by air. During the PRRI rebellion in the 1950s, the airfield served as a major base for the Indonesian Air Force.

In 1967, the airport was later renamed Sultan Mahmud Badaruddin II International Airport. The name was chosen in honor of the Indonesian hero Sultan Mahmud Badaruddin II, who led the Sultanate of Palembang Darussalam from 1803 to 1819. During his leadership, Badaruddin II played a pivotal role in resisting the Dutch East India Company (VOC), which was invading Palembang at the time. The airport gained international status in 1970.

Effective 1 April 1991, the airport came under the management of Angkasa Pura II, which later rebranded as InJourney Airports. When South Sumatra was selected to host PON XVI in 2004, the government initiated plans to expand the airport’s capacity and upgrade its status to an international airport. The current terminal building was inaugurated on 27 September 2005 by then-President Susilo Bambang Yudhoyono. The airport underwent further expansion in 2017 in preparation for the 2018 Asian Games.

In 2024, the Indonesian Ministry of Transportation briefly revoked the airport's international status due to the absence of international flights; however, it was reinstated in 2025.