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This study focuses on the inhabitant's characteristics of an urban riverside settlement in Palembang City. The field survey of this study has been carried out by interviews of family members or household heads. We found that the raft and pillar houses in Musi urban riverside settlement constituted a dwelling area for migrants coming from other places. Most of them were Malay coming from the area surrounding Palembang City. The inhabitants of both houses mostly worked as laborers and informal sector workers of Palembang City. Differing from the pillar house inhabitants, most of the raft house inhabitants were river workers. The greater part of both inhabitants intended to move out into the other places. This study therefore identified the raft and pillar houses in Musi urban riverside settlement as a first step Chousing. In addition, because the prices of raft houses were much lower than pillar houses and rental costs for pillar houses were relatively high, the raft houses tended to have more potential as first step houses.
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