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Palembang City is located at lowland where 70% of the city has an elevation from 0 to 5 m above mean sea level. With tremendous development and land use change, Palembang City has faced more problems with a flash flood and a larger inundated area. This paper presents a study on the subsidence on Palembang City using remote sensing data. The SAR data set and the optic data set were used in this study. From the study, it is found that within a decade the land use changing in Palembang City obviously a presence. The land subsidence causes the further problem of inundated area worsens the existing runoff water discharge which controlled by the tide of Musi River. The predicted inundated area due to land subsidence is presented in this paper as well.