The area of the museum used to be the location of the benteng lamo the palace of Sultan Mahmud Badaruddin Jayo Wikramo or Sultan Mahmud Badarrudin I (1724-1758) stood.
In 1821 th palace was attacked by the dutch military. On October 7th, 1823 a dutch commissioner, J.L. van seven house , instructed his men to totally demolish the palace to eliminate the greateness of the Palembang sultannate. He did this as a revenge on the burning of sungai loji by sultan Mahmud badaruddin I in 1811 . the building was completed in 1825 and became the offices of the commissariat of the netherland east indies and the resident for South Sumatera area.
From 1942 to 1945 the building was occupied by the Japanese. After the proclamation of the independence of the Republic of Indonesia, the building was under the control of the Indonesian Government. In 1949, it became the office of Toritoriun II Sriwijaya. From 1960 to 1974 it was used by Resimen Induk IV Sriwijaya.
The 1988 survey conducted by the Team of National Archaeology found a brick foundation of Kuto Lamo on the burnt logs in the area. According to the calculation, the building of Benteng Kuto Lamo in the era of Sultan Mahmud Badaruddin I was officially occupied on Monday, September 29th, 1737. Thus, the age of the logs must have been more than that of the building.
The name of Sultan Mahmud Badaruddin is use to remember and appreciate this service.
Source: Dinas Pariwisata dan Kebudayaan Kota Palembang – Selamat Datang di Palembang, Kota Wisata Sungai (Welcome to Palembang, River Tourism City)