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Some say that the name was given by four brothers who survived a shipwreck near Musi River during the Majapahit reign. It refers to the geographical features of Palembang, which is a wetland. It also means "a place which was constantly inundated by water". By adding the same prefix, the city's name means "a place where the water leaks". Others say that the name comes from the word lembang in Malay. It is said that during antiquity, the ruler ordered gold and diamond miners to pan their ores in the city for security and surveillance reasons. By adding the prefix pe- which indicates a place or situation, the city's name means "a place to pan gold and diamond ores". Some believe that the name "Palembang" is derived from the word limbang in Malay. Traffic jams, floods, slums, pollution, and peatland fire are problems in Palembang.
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The city is a major local tourist destination attracting a total of 2,011,417 tourists in 2017, however, it is not a well-known international tourist destination as foreign tourists only account for 9,850 out of the aforementioned total tourist arrivals. The first light rail system in Indonesia was operated in Palembang in July 2018. Palembang was the host city of the 2011 Southeast Asian Games and the 2018 Asian Games along with Jakarta. It was chartered as a city on 1 April 1906. Palembang was incorporated into the Dutch East Indies in 1825 after the abolition of the Palembang Sultanate. a Chinese monk, Yijing, wrote that he visited Srivijaya in the year 671 for 6 months. It was the capital of Srivijaya, a Buddhist kingdom that ruled much of the western Indonesian Archipelago and controlled many maritime trade routes, including the Strait of Malacca. Palembang is one of the oldest cities in Southeast Asia. It comprises parts of regencies surrounding the city, including Banyuasin, Ogan Ilir, and Ogan Komering Ilir. The Palembang metropolitan area has an estimated population of more than 3.5 million in 2015. Palembang is the second most populous city in Sumatra, after Medan, and the ninth most populous city in Indonesia. It had a population of 1,668,848 at the 2020 Census.
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The city proper covers 400.61 square kilometres (154.68 square miles) on both banks of the Musi River on the eastern lowland of southern Sumatra. Palembang ( Indonesian pronunciation: ) is the capital city of the Indonesian province of South Sumatra.