Batam Island

Batam is an island and city in Riau Islands Province of Indonesia, known for its free trade zone area as part of the Sijori Growth Triangle, is located 20 km (12.5 miles) off Singapore's south coast. The 715 km² (276 miles²) island has a population of 949,775 (June 2010).^[1]
The indigenous community of Batam are ethnic Malays and they speak Malay in the Riau-Lingga accent which is also the accent of the Malays in Singapore and the Malaysian states of Pahang, Johor and Selangor.^{[citation needed]}
Batam is located east of Karimun and Bulan Island, west of Bintan, north of Rempang, and south of Singapore. The Riau Strait (Selat Riau) separates Batam and Bintan. The biggest community on the island is Nagoya. Other main communities include Sekupang, Jodoh, Sungai Panas, Batam Centre, Baloi, Batu Ampar, and Bengkong.

Pompong boat for short distance connections in Batam and nearby islands

[edit] Economy

Beginning in the 1970s, the island underwent a major transformation from a largely forested area into a major harbor and industrial zone. The island's economy benefits from being close to Singapore, and, with lower labour costs and special government incentives, is the site of many factories operated by Singaporean companies. Shipbuilding and electronics manufacturing are major industries on the island; there are also several resorts and tourist destinations on the island.^[2]
At the end of 2010 almost 58 percent of foreign tourists came from Singapore, followed by Malaysia at 13 percent. Most of the foreign tourists entered Batam through Singapore using ferry services as Batam has limited international flights.^[3]

Under a framework signed in June 2006, Batam, along with parts of neighboring 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.^[4]