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Location

The location of the intended town was about 15 kilometers from the Batu Pahat river estuary, on the right bank if sail upstream. Dato' Bentara Luar chose this area because it was easy and it can gather big ships that were estimated to go into the river by building a wharf as a trading facility. Although the area that was intended to be built as a town is low, frequently drowned by salty water when high tides came from the sea, approximately 2 kilometers to the inland area there was a high area, hilly and had fertile soil for crops.

Dato's Bentara Luar built his home at Kampung Penggaram situated at the opposite of the Kadri Lake as his site office to open the town.

On the 2nd of December 1893, workers started  measuring works from the coffee farm road to mount Penggaram until Penggaram River. At the side of Penggaram river, workers built simple homes as a place to stay. They worked to build the road inside it. They also started to build houses, office, court police and put up stones embankment on the road.

Measuring work, planning and developing the town center district administration had run smoothly with the help from two village heads besides the expenses that had been collected by locals and financial support from Orang Kaya (Rich Man) Bagan and also with the financial support from Dato' Bentara Luar himself

The official launching was on the 1st of January 1894 by Dato' Muhamad Salleh bin Perang himself who was known as rich man, village head and well known to locals. The highlight of the event was the Raising of The Johor flag ceremony at Penggaram hill, now a foundation for District officer home and later the hill was called Bendera Hill until today. Next, administrative officers were arranged and government offices like courts, police, jail, hospital and others were built one by one. The development was running good and smooth and in one month time the total revenue attained was $1,500.00.