This region of the Riau Islands Province near the Strait of Malacca includes one of the busiest shipping lanes in the world.

This area is on the international trade route and is directly adjacent to Singapore and Malaysia.

In the region, tax and customs exemptions are applied to boost investment growth.

Under a framework signed in June 2006, Batam, along with parts of neighbouring Bintan and Karimun, are a part of a Special Economic Zone with Singapore; this zone eliminates tariffs and value-added taxes for goods shipped between Batam and Singapore.

[8] Ferries connect Batam to Singapore, Bintan, and Johor Bahru (Malaysia).