Sixteenth century Portuguese reports claimed that the island was inhabited, possibly by the Orang Laut.
[1] Around 1615 agents of the Dutch East India Company (VOC) inspected the northwestern coast of the island for the possible construction of a fortification.
Although Karimun was deemed to be of great strategic value at the confluence of the Singapore and Melaka Straits, it was found to have insufficient sources fresh water to sustain a British trading post and a settlement.
However, due to the stronger ties between Singapore and Malaysia, Karimun is losing its economic attraction to Singaporean investments.
Indonesian has however limited sand exports over concerns with Singapore's reclamation projects, and banned them outright in the beginning of 2007.