As the capital of North Sumatra, Medan has a very strategic position. There are consulates of foreign countries and it is the primary center of activities of northern Sumatra.

Geographically, Medan is located at 3^o30' — 3^o43' Northern Latitude and 98^o35' — 98^o44' Eastern Longitude, with a north-ward sloping topography and it lies at 2,5 - 37,5 meters above sea level.

Based on Decree of the Governor, Head of First Level Region of Northern Sumatra no 140.22/2772.K/1996 dated 30 September 1996, administratively the City of Medan is divided into 21 districts which cover 151 villages.

The development of the City of Medan is focused on becoming the center of governmental administration, industry, distribution of goods, financial service, communication, accommodation, tourism service and regional as well as international trade.