Batam City, in Riau Islands Province, is an Autonomous District; most of the area is also a free trade and harbour zone established by the Indonesian government. The phenomena of “two captains in a ship”, namely the Batam Indonesia Free Zone Authority and Batam Municipal Government, indicates that the social space has been constructed by parties with vested interests in it. The area’s strategic location along the country’s maritime boundary with Singapore is an ideal model to conduct research based on Henri Lefebvre’s theory of space production. This research has been completed using the methods of literary review, field observation, interviews, and analysis. The results of the research indicate that there are no problems in the policy itself; rather, the ideological differences and sectoral egos of both organizations cause problems. A solution to this dualism leadership is not yet given owing to the limited scope of this research