CASE STUDY:

Dutch Coloniol
RUle in lndonesio
sq?et\ot*g
({utr,u)
Padri War: The Java War
First war broke out
wagedby
'::.,'
the Dutch in
lndonesia:
:, ''' i
The &rteh.qn*xr
rhe tueua*er
.S+th8a{in
r.esists4",D+tch
r{+e{1'g0&{{Hq}
"
The
iB#r
the Balinese ievolts.
&u;tetr.eclfl{stisfr of
lnds,nesia'completed
econolT\\L
The Suez Canal
/
opened
The Dutch implemented
the b.+becalPolicy and
passed the Agrarian
i
Law and the Sugar Law
The.Et*t*hqser
the Java War
The Dutch ,
implernented
thee.sjts**
System,
TheMtr
urm the
Padri War
The Butctr
greind
oas*rfl of
nofthern Bali
,--6nJOt\
The Dutch
launched
the E{biral Policy
The Aceh War
broke out
\
\
estahlished Depression began
thel$(3ld
\
geoPe
oUe
rc
".
'
,\olte,{navt$6r!{V,
'.
. ,,
Second Anglo-Dutch
Treaty sign;d
Res\Sto\ce
The Dute h
d.evalued
the:gtrilder
t l{ey events during Dutch,,colanial rale in Ind.onesia,
CHAPTER 4 i DUTCH COLONTAL RULE N |NDONESIA
125
Bockground to Dutch coloniol rule
in lndonesio
Pre-colonial Indonesia did not exist as one political entity. It was a loose
collection of over 13,000 islands inhabited by diverse ethnic groups such
as the
lavanese,
Acehnese, Dayaks, Bataks, Balinese and the Austronesian
peoples, under different rulers. These peoples did not see themselves as
having one common political identity or belonging to a single country.
Indonesia also had diverse geographical features. There were maritime states
such as those in Sumatra and
Java,
which thrived on regional and international
trade. Then there were the inland statessuch as the ones in central and east
]ava
and Bali which thrived on agriculture because they were situated on plains rich
with volcanic soils.
The earliest of Indonesian states were Hindu or Buddhist. But by the 17th
century, the majority of Indonesians had accepted Islam. Aceh was a centre
of Islam, promoting Islamic thought and literature. Bali, however, remained
mainly Hindu.
DUTGH VOC
-tch
hod been octing os
=men
between Southeost
croducers ond Europeon
, in the profitoble spice trode,
hod been controlled by the
juese.
Since the flrst holf of
:-h ceniury, the Dutch wonted
: iheir own direcl route to the
-croducing
londs in Southeosi
Asio. The first Dutch expedition
to lndonesio returned with spices
which they sold in Europe ot o 400
per cent profit. This encouroged
the Duich government
to combine
competing troding componies into
o single Dutch Eost lndio Compony
(known by its Dutch initiols 'VOC'
for Vereenigde Oost-lndische
Compcgnie). The VOC wos vested
with the power to es-toblish troding
colonies, build forts, sign ireoties
ond woge wors on beholf of
the Dutch government. In 1800,
however, the VOC went bonkrupt
becouse of wors, mismonogement
ond corruption, ond wos dissolved.
The Dutch government then took
over the control of VOC's territories.
FIGUI{E 4:2 Territories under Dutch control in the early 20th century.
126
CHAPTER 4 DUTCH COLONIAL RULE tN tNDONESTA
tricutrtrE 4..34, engraving,
'Batavia
in the East Incliesi 1814.
The Dutch had been present in Indonesia for trade
since the closing years of the 16th century. Their
desire to monopolise the profitable spice trade to
Europe caused the Dutch to attack and take over
Jayakarta
rn 1619, a significant trading port in the
northwest coast of
lava.
It was renamed Batavia
and became the main trading centre of the Dutch
trading company (the
VOC) in Indonesia. From
then on, the VOC slowly expanded its presence in
the islands, establishing trading posts, and took
over surrounding territories to protect its trade
from competitors. In 1800, the VOC became
bankrupt and the territories it had acquired came
under the Dutch government. Except for a brief
period during the Napoleonic
\Wars
(L799-1815)
when the British had control over
Java,
Indonesia remained under Dutch rule
until World
'War
2 began in 7947.
Before the 1800s, the Dutch did not want to intervene in local affairs as these
could cost them a lot of resources in terms of money and manpowe.r. In spite of
their intentions the Dutch were repeatedly drawn into local conflicts. In Sumatra,
for instance, an Islamic movement called the Padri Movement started a civil war
against the ruling aristocracy in Minangkabau (read more about this on page 136).
The aristocracy appealed to the Dutch for help, offering them sovereignty over
Minangkabau in return. The Dutch fought the Padris and won. Also, in 1825, the
Java
War broke out against the Dutch over economic and religious issues. The Dutch
won the
)ava'War
in 1830 and seized territories like Yogyakarta and Surakarta. In the
Baniarmasin
'War
(1859-1863), the Dutch iook the southeastern part of I(alimantan.
Most of the islands, however, did not come under Dutch rule till the first decade of
the 20th century. You will read more about this on pages 136 to 747.
B-41-.r.-t-1 !r/ tt ,, t,r"t Z\-t)tt: \
'..,fn
OLUCC
ICe ISIa
s
tl
ffi'r
Pontianako
C 6
T\
Amhon
l_.]
iszo
l-l
,lsqo
I-:l1860
Wnsa
!rsro
Batavia
o..
JAVA
Surakarta
-r4ol-
/o\
_l
Yogyakarta
I
)"
* ,l
t'*l?r.-,7
Banjarmasin
\^,.^
\ Palefiban0
t\
suunrni\r\r
\-r
FIGUI{E 4.4 Expansion of Dutch colonial power in Indonesia
from 1820-19fi.
CHAPTER
4 i DUTCH COLONIAL
RULE tN |NDONESIA
127
Reosons
for Dutch
colonisotion
of
lndonesio
Up till the early 19th century,
the Dutch
tried to maintain
an official policy of
non-intervention'
The Dutch
were usually
more .o"...".a
with matters related
to trade such as the delivery
of cash crops from an.
"irilg"r,
rather
than with
matters
of governm,."!
gl
with gaining
sovereignty
over territories.
However,
in the later part of the 19th centiry,
they extend"ed
iheir control over Indonesia
and began to intervene
in matters'of
government.
This change
was caused by
a combination
of political,
economic"u"a
,o.iuii;;;
"-
Politicol
foctor
Ta build an empire
and spheres
of influenc*
one factor
that motivated
the Dutch
toward
territorial
expansion
was the
competition
for power
in Europe.
w-ith the unification*or
c..-u"f
i, rai,
the balance of power
in Europe
shifted.
1t,".o-p.;rir"
i,,orrg the European
powers
intensified
as each feared
that their rivais
*oria1ut.
over territories
and cut the others offfrom
access to the available
trade and raw materials
there.
In Indonesia,
the Dutch
were competing
against the British. rn rl77,the
British
and Dutch governments
signed a treaty ln which the British removed
their
objections
to Dutch expanslon
into sumatra (see
boxed story below for more
on the Anglo-Dutch
treities).
-DUTGH
TREATIES
understond
how the Dutch
theil coloniol territories,
need,ts look ot the treoties
beiween the Dutch ond the
. These treoiies were signed to
conflicts ihot resulted
from
effor:ts io expond their coloniol
.ln these treoties, they
to recognise
eoch other,s
s of influence.
1824, the British ond Dutch mode
ogreement
i
They gronted
eoch other trode
cccess within their spheres of
influence with o most-fovoured
noiion stotus. This meont they
gronted
eoch other occess to poris
ond could not chorge eoch other
higher toxes thon whot their own
merchonts poid.
.
The Dutch gove
Meloko to the
British in exchonge
for Bencoolen.
.
Since l7B4,lhe
Dutch hod cloimed
sovereignty
over Johor-Riou.
When the British took Singopore
in l812 the Dutch sow it os on
infringement
on Dutch territory. ln
lhe 1824 treoty, however,
the Dutch
ogreed to drop their legol cloims
to Singopore
ond recognised
the
British rights there.
.
fhe ir824 Treoty, however,
did
not cleorly limit the exponsion
by
either side, so further
disputes
orose over Dutch control in
Sumotro,
especiolly in the
Sultonote
of Siok. Since lB5g.
the Dutch hod subjecied the
Sultonote of Siok to its rule. The
British protested
ogoinst this ond
were upset with the toxes they
hod to poy to the Dutch in order
to do business in Siok os they
felt it wos o violoiion
of the lg24
treoTy.
,
1n,1671;
o new treoty wos
negotioted.
Here, the Brifish
ogreed to recognise
full Dutch
righfs over Siok. The Dutch
ogreed to give
the British equol
troding rights ihere.
.
The British olso gove
the Dutch
control over the Aceh Sultonote.
which up till ihot time hod been
free from foreign control.
divided the Moloy
peninsulo
lndon,esio
into British,ond l
tch spheres
of influence _
neSio for ihe Dutch ond fhe
Peninsulo
for the British.
Siroits of Meloko
ond
were the morkersof
olvtslon_
RES SF rf,{Fl"UEi{C:
Arens ot ierrijory
wnere one Oower hos predominorl
,nce.
A sphere of infiuence
is not owneJ byil; foreign power.
,
DA
CHAPTER 4 I DUTCH COLONTAL RULE tN |NDONES|A
s0uBct
4.1
ft seens to rne in many respects very advantageous that
tbe Dutch should
Bossess
this Archipelago. ff it were not
1n the hand.s of the Dutcbr it would. fall under the sway of
sorae other maritirne power, presumably the Frenc\ unless
we took it ourselves. The French might, if they possessed.
guch
an eastern ernpire, be really d.angerous to Indla and
Australla, but the Dutch are and nust rernain too weak to
cause us any alarm.
British
fficial
Lord Wodehouse in a memorandum dated 18 August 1860.
The British recognition of Dutch control over Indonesia did not end the rivalry
between them. The Dutch were further provoked when in the 1880s, the British
established protectorates over Sarawak and started the British North Borneo
Company. The Dutch felt threatened as the British were trying to establish
themselves in the territories close to their own, especially since according to
l
the 1824 TreatyJhe islands were in th
il
/
Sarawak, the
,
proclaimed
himself the Raja of Sarawak and Brunei, and carried out administrative reforms
to strengthen and secure his rule. The Dutch then decided to entrench their
control more firmly over the rest of Borneo.
The Germans had also shown interest in the area. In 1880, Germany had
gone into New Guinea where the Dutch had earlier claimed territories on the
western side. The French too, were expanding further into Vietnam. This pressured
the Dutch to take a firmer stand to enforce their hold on Indonesia.
.$
truvesrtoATE rHrs: Source 4.1
shows us thot the British would
rother recognise Dutch rights over
lndonesio thon see this territory foll
into the honds of o stronger rivol,
such os the French. Whot con you
leorn from this source obout politicol
rivolry omong Europeon powers?
How does this source help you
understond why the Dutch colonised
lndonesio?
FIGURE 4.5 These are some cash
crops produced in Indonesia
which were in great demand in
Europe,
Economic foctors
To obtoin row moteriols ond cosh crops
In the 19th century, Indonesia became even more important to the Dutch as a
source of economic proflt. There were two main reasons for this. Firstly, the
acceleration of industrialisation in Europe created an increased demand for
raw materials. Secondly, the opening of the Suez Canal in 1869 and advances in
steamship engineering greatly reduced the distance and time taken to transport
goods from Southeast Asia to Europe. This resulted in a great increase in trade.
lndonesia provided the Dutch with a rich source of profit from raw materials
and cash crops. Tin was discovered in mines in Bangka. In the 1860s, oil
was also discovered in Aceh. cash crops like sugar and coffee from
Java,
and pepper from Aceh also made
Indonesia highly profitable to the
Dutch.
sugar cane from
which sugar is
processed
CHAPTER 4 I DUTCH COLONTAL
RULE lN lNDC..:j
r29
INDONESIA
RESCUED
THE NETHERLANDS
FROM
BANKRUPTCY
During the Nopoleonic
Wors (1299_
1815) in Europe,
the Dutch incurred
greot
losses from the costs of wor,
the loss of colonies ond revenues.
Loter, the Jovo Wor (i825_i830)
in
lndonesio
odded to its finonciol
troubles.
The Dufch needed
o woy io
recover
their losses.
ln
,I830,
o Dutch Governor
Generol.
Johonnes
von den Bosch, wos
oPpointed
to oversee Jovo. He
instituted
o policy
colled the Culture
System, by which the Dutch forced
the Jovonese
to ploni
cosh crops
such os sugor ond coffee, ond sell
it bock to the Duich ct fixed prices.
The Dutch would ihen morket it
for o huge profit
in Europe. The
Culture System brought in obout
o ihird of Netherlond's
revenue
from l85t to 1866. li brought the
Netherlcrnds
bock from the brink
of bonkrupicy
ond helped fuel her
industriolisotion.
AII these made the Dutch
more determined
to hold onto their territories
in
Indonesia,
especially
in the face of increasing
competition
from other European
powers.
x**w*{ e":r
There 1s a long tradition
of oplnion to the effect that
without
its colonles
the Dutch
would have been econornicarly
insignlficant:
:::.::i:l^:::r::
with its rack of minerars
and. absence
of berching
e.LasL-rurnaces
could
only cornpete
on the lnternatl0nal
stage
by
vlrtue of its empire,
and could. only rnanage
to keep
up with its
neJ'ghbours
in the econoraic
d.everopraent
by dint of the help received
fro* its coronies,
flrst through
the state,
and. rater through
prlvate
enterprise.
..- The Governor
General
an. rater Mlnlster
for
the colonles
J.c- Baud (ry8g-t85g)
cohed the phrase
that the rndies
were'the
cork
upon which the Netherlands
floats,,
and the Llberal
pollticlan
C.T. van Devester (fg5Z_fgrS)
was convinced.
the Dutch
owed.
the Indies a
'd.ebt of honour'.
The Duteh
econortrJ6
he reasoned,,
wae
ent'irery
dependent
on the colony:
fwithout
prosperlty
1n the East
rnd'ies'
neither trad'e, shlpplng,
or agrlcurture
which supplies products
to the European
rnarket,
can flourlsh
in the long run"
(Taken
from
An economic
and sociar history of the Netherrands,
1800_1920:
Demographic,
economic,
and sociar transition
by Michaer
/. wintte). In this book, the writer tried to provide
a
comprehensive
account of Dutch history, economy,
and socio-poriticar
deveropment.
,J);*vrrr;eAl[ ?rri$: source 4.2 iilustrotes
the importonce
of the economic
foctor
for the Dutch
coloniol exponsion
in lndonesio.
Do you
flnd this source believoble?
whyT How does it herp you
to understond
Dutch motivotion
for coronior
exponsion?
In whot woy does ihis source show on overtop
oui*uun the poriticor
ond economic
focfors?
For o long time,
people
ihoughi
fhot without its
colonies, the Dutch
could not compete
internolionolly
since
it lcckeci minerol
resources
ond
industriol
methods of
procluction
(blosi-
furnccesJ
.
The writer.quoted
tw,c
minislers, J.C. Boud
on<1 politicicrn
C.T.
von Deventer, who
were of this cpinion.
130
CHAPTER 4 , DUTCH COLONIAL RULE IN INDONESIA
To creaie fin environment
far investrnents
In 1870, the Dutch colonial government introduced a change in the economic
policy
-
frol the Culture System to the Liberal Policy (see
6oxed story below).
Under the Lib.eral Policy, government monopolies over cash crops were gradually
abolished and Indonesia
was opened up to private enterprise.
During this period, the Dutch colonial government
enacted two new laws.
The Agrarian Law passed in 1870 allowed individuals to lease land from the
government for agriculture for up to 75 years. Private individuals and companies
began to establish plantation estates, especially in the outer islands whlch had
land for cultivating
cash crops, as well as oil and mineral resources. The Sugar
Law also passed in 1870, abolished compulsory sugar cultivation over l2y.r.r.
Private individuals
or companies could then establish sugar plantations in the
outer islands as well' However, because the Dutch still needed to extract profits
from Indonesia, forced cultivation of coffee, the next most profitable produce
after sugar, continued until 1917.
With Indonesia
opened to private enterprise, the Dutch needed to impose
territorial control to create a stable environment. This would attract investors
and ensure the security of their investments.
The Dutch introduced these three economic sysiems or poricies
in rndonesio
CULTURE SYSTEM (1830-
1870)
.
The Dutch forced the Jovonese
to plont
cosh crops such os
sugor ond coffee ond sell it
bock to the Dutch ot fixed
^-i^^^
Pr
rLU5.
.
The Dutch would ihen morket it
of huge profits in Europe.
.
The Culture System brought the
Netherlonds bock from the brink
of bonkruptcy.
.
However, this system brought
much hordship to Jovonese
peosonts, who suffered fomine
in the i840s os the lond they
used for plonting
food wos used
for cosh crops insteod.
LTBERAL POLTCY (1870-19O1
)
.
The Culture System wos severely
criticised in the Netherlonds.
The Dutch believed thor less
government
involvement in
the economywould
benefit the
indigenous people
more,
.
A new economic policy,
the
Liberol Policy, wos introduced.
.
The economywos opened up
to privote
enierprise (businesses
monoged by componies or privote
individuols rother thon by the
government).
.
Forced cultivotion wos obolished.
.
New plontotions
were opened,
run by privote
enierprise, but
supported by government
irrigotion projects.
.
The Dutch people
thought thot
this system would bring greoter
benefit to the locol people.
But
the locol people
continued to be
exploiied.
.
Most of the profits went to the
Dutch ond plontotion
owners.
ETHTCAL POLTCY (19O1-1
929)
.
Some Dutch people
opposed the
LiberolPolicy.
.
They felt fhot the Netherlonds
owed their colonies o
,**bt
rt
5,c,1+u:'
for oll the weolth
they hod removed, ond for the
suffering they hod coused the
locol people.
.
New policies were therefore put
in ploce
focusing on reforms
in educotion, irrigotion ond
immigrotion.
.
They olso felt thot locol people
should hove o greoter
soy in
how lndonesio wos governed
ond monoged.
.
A People's Council (Volksrood)
wos set up in l9l6 for this
purpose.
$';1: Cr '-"ailSir;. A debt whicn
one is morcrly bound 1o poy,
lhoi,gn Dovrr,enr is
.ro, ,equired
by low. Here, ihe DLIJCh ferr lhey
hod derived so much profit from
cnd ccused so much suffering in
lndonesic, thct ihey hcrd o mcrol
resocnribi';ty
io give .cnreining-
back.
THE DAYAKS
The Doyoks ore o tribe of people
living in Borneo. They were known
for their proctice
of heod-hunting,
which gove ihem o feorsome
reputotion. It wos port
of their
troditionol culture to collect the
heods of their enemies os trophies.
The Doyoks live in longhouses,
where mony fomilies live together
in o single house over o hundred
meires long. Severol longhouses
form o villoge. They hove o rich
culture ond olso proctise
o unique
legol system colled odot, where
sociol rules ore possed down from
generotion to generotion.
Under
Dutch rule, some Doyoks, who
were troditionolly onimists, become
Christions or Muslims.
CHAPTER 4 DUTCH CCLONIAL RULE IN I'!D' .=- :
131
Socicl fcctor
L)*sil'* i* civilise ii':#*n*si*
Dutch expansion was also motivated by concerns for the welfare ol :, :
indigenous people. At the height of the period of imperialism, European po...,.::
generally believed that European countries, being more developed than :_:-.-
European countries, had a right and a moral obligation to bring cir.ilisar--:-
to these less-developed territories. Dutch reformers also supported colo:-..
expansion as a way to remove practices in Indonesia such as head-hur-Lti:t-.
widow-burning and slavery which were deemed cruel in European societr.
r:Iciul1E
q..a
Tnis is the interior af a Kajan Dayak howse with skulls and weapans
along the wall.
'l::ili;:1ri*l: $,i
A.s a socialist mernber of parl-lament
in The llague,
yan
Kol_
l:'r;:.i"*.:.':rl** a.gainst the exploitation of
'the
poor Javanese peopie'"
As the owne? of a eoffee plantation in Java, he empioye{ such. poor
workere himseif
(tut
tAis was known only to a very few
3:eople).
Van
Kol bought th*
'Oayunna$'plantation in eastern Java 1n l_gB?.."
Eack in the N*th.erland.s, Yan Ksi continually criticized th.e colonlal
polltl*s of the government"
!I* did not disagree wlth the colonialism
as such:
'We must lead this people Lovlngly, augment the riches sf
the country as benevolent caretakers, and lnerease ihe wealth of its
inbebitants" fn this magnificent country we have to support
f ,.: ;iii,! :"1 l-1. i* nr : f r-oie-ri t a
iii'+rigly cgcirisi.
The',r,rril*r'lf this cr-iic
=
stciecj ihr;i thq:ugi. vc-
Kci proiestec.i s1rcngr,.
cgcinif explciiirig it=
..Jcrvcne-ce, he hirrrse'
en-:plc'yeri suc h vlci'<:
-,
Tiie rrrriter 5uggesi-. l
inci Vcrn (ol jusiii--c
colcniciisr-n br;
emphosisinE rne
ilumcnit0ricn c--,.
-'
ihe ccicnig: ir':li-= ..
136
CHAPTER 4 I DUTCH COLONIAL RULE IN INDONESIA
5
PADRT WAR (1821-1838)
This wor wos fought between the
Podriond the Adot leoders of the
Minongkobou ethnic group in
west Sumotro.
The Podri were lslomic teochers
who odhered to Wohhobism, o
strict form of lslom. They wonted
to overthrow the un-lslomic Dutch
rule ond estoblish on lslomic stote
promoting
o pure lslomic lifestyle.
The Adot leoders, however, lived in
woys incompotible with the
podri's
form of lslom. This conflict orose
when olmosi the entire fomily of
the Minongkobou royol fomily wos
murdered in
,]815.
The Adot leoders
soughi Dutch help in l819 to defeot
their enemies. The conflict finolly
ended with the defeot of the
podri
ond the exile of their leoder, Tuonku
Imom Bonjol
JAVA WAR (182s-1830)
The Jovo Wor wos o revolt led by
Prince Diponegoro, the eldest son
of the sulton of Yogyokorio. The
Jovonese fought ogoinst the Dutch
becouse of the suffering brought
obout by Dutch exploitotion of
Jovonese peosonts.
Succession
disputes in the centrol Jovonese
court olso odded to the instobility in
the oreo. The revolt wos put
down
by ihe Du+ch only ofter mony
costly compoigns. About 200,000
Jovonese either died in the fighting
or from storvotion due to wor-time
conditions. When the Jovo Wor
ended, centrol Jovo come under
Dutch control.
How
did the locols
in
Indonesic
respon(C
to
Dutch
exponsionT
?mOtl"uqted
b\i eorlce(ns.tr l-\eQ.\e
Ot
lndlgen\Jo$s
pe<)p\e
? hqd
a r\q\"it err,c!.nayo\ ob\\qoa\cr\s. to
br\nq qJ\\ \\\SCr'\Oo tO reSsdS{\6FeG
ttyv^rtorirs
>
tf(ed
<iO qbo\rsy,r
*1O\O\\$O
O\\
p(0(1\ce3
(heqel
\rur+.r\qrs\ct{qY\ ,
liA\dQv\
bvY n\ng)
*qUtcvr re{oym\s qnCtr
e}elzts
otrror-eur:
dutcrl ov\ed| r\e),ones\c since ex+Yottd
stf much prut**
,qw
to
q\"1<,
Somefl'\\ng
in Teturn
.
aNi'lho\
(\Y'\oAt\or'
-^',:Htffi,
ho\p{
qtnt
FIGUIIE c.z This map identffies
the locations oJAceh, Bali and the
land of the Minangkabau, over
which the Padri War wasfought.
the
|ava'War
and the Padri
two wars).
;/
u'
ns"
The Dutch took a long time
to establish colonial rule over
Indonesia (see
Figure 4.4 on
page 126 for a map showing
the expansion of Dutch
colonial territories from 1820
to 1910). When the Dutch
started acquiring territories in
Indonesia in the 17th century,
some groups of locals resisted
while others collaborated with
the Dutch.
Two examples of resistance in
the early 19th century were
War (see
boxed story below on the
CHAPTER 4 I DUTCH COLONIAL RULE lN iNlDOl.{ES|A
137
In the late 19th and early 20th century, the Dutch continued to face strong
resistance from the locals, such as the Acehnese and the Balinese. At the same
time, there were locals who collaborated with the Dutch, such as the Ambonese.
Aceh Wor (1873-1904)
The Aceh War was one of the longest and most expensive wars in Dutch colonial
history. Aceh, on the northern tip of Sumatra, was a powerful Islamic kingdom.
In this powerful state, the Dutch faced its strongest opponent.
Events lecding up to the Aceh War
In the early 1800s, the British and Dutch had agreed that Aceh should remain
independent. They hoped that by doing this, they could prevent each other from
gaining control over Aceh. In the 1820s, Aceh rose in importance as it provided
half the world's supply of pepper. The Dutch, determined to exploit the natural
resources of Aceh (especially pepper and oil), now wanted to prevent Aceh from
becoming independent.
The Dutch feared that Aceh would welcome foreign influence into north
Sumatra and became alarmed when in 1869, Aceh requested the Ottoman
Empire for help to protect its independence against Dutch expansion. See the
boxed story below on relations between Aceh and the Ottoman Empire.
RELATIONS BETWEEN ACEH
AND THE OTTOMAN EMPIRE
Aceh wos estoblished os on
islomic kingdom in Southeost Asio
since the 16th century. lt become
o vossol of the most powerful
Muslim empire oi the time
-
the
Ottomon Empire in Turkey. The
Ottomon Empire supported the
Aceh Sultonote in its efforts to
{}ii f; R*, lL*.'.fi{$rRf?t F 5 : I n
guenilio worfore, o smoll
group of fighters, operoting
from hidden boses, lounches
surprise roids ogoinst 0 more
powerful enemy. lnsteod of
toking on lorge units of enemy
troops, ihey would torget smcrll
groups of enemy soldiers or
enemy resources ond then
quickiy withdrow oncl hide.
These ioctics con ollow o smoll
force to weoken ond exhcusi
o lorge ormy. Smoller ihon
troditionol ormy uniis, guerriiio
troops con oct with greoter
mobility ond speed.
expel the Poriuguese in Meloko,
ond to extend its own power
in Sumotro. The Ottomons sent
ships, soldiers, weopons ond
ommunition to the Acehnese,
ond the Acehnese poid for these
in peorls, diomonds ond rubies.
The relotions between them
wos o threot to the Portuguese
during the l6th century.ln the
,1870s,
Aceh feoring otiocks from
the Dutch, ogoin turned io the
Ottomon Empire for help. The
Ottomon Empire, however, wos
experiencing internol problems
ond olso fighting ogoinst the
Russions in Europe of the time,
hence did nol help.
In 1871, the British and Dutch signed the Second Anglo-Dutch Treaty u,hich
acknowledged Aceh as a part of the Dutch sphere of influence. This effectir-elr
removed the obstacles for the Dutch to expand their rule into Aceh. In 1873,
Aceh, hoping for American support against the Dutch, sent representatir-es to
the American Consul in Singapore to negotiate a treaty. The Dutch sau-this as
a violation of the 1871 Anglo-Dutch treaty and used this as an opportunitv ro
attack Aceh.
Guerrillo wor
From 1873, Aceh fought a long war against the Dutch, which nearly bankrupted
the Dutch colonial government. Although the Dutch eventuall,v captured the
capital, the Acehnese continued to fight a guerrilla war against the Dutch. The
tactics of gilc*rri3E* ",+*q'tr*rE"e allowed the Acehnese forces to compete against
Dutch troops.
138 CHAPTER
4 DUTCH
COLONIAL
RULE IN INDONESIA
From
hidden bases in the jungle,
Acehnese
soldiers raided passing
Dutch
troops' In response,
the Dutch
cut down vast tracts of forest. They laid railway
lines which enabled
them to move.their
troops and supplies
more easily and
gave them greater
control
over the land. The ;r,.h
also ieploy"a
,-"tt.. n.,a
more mobile forces which were more effective
against the guerrilras.
isicrr
Islam sustained
Aceh's. long resistance.
Religious
leaders,
called the uiama,
rallied
the so-rdiers
and peisants
to fight
,rlt
,, vilragers
but as Muslims,.
ordinary
Acehnese,
led by the ulama, r""rg}rt,h.
;utch resulting
in thousands
of Acehnese
dying in the war.
Locol Colloborotors of the Dutch
The Dutch did not win this war by themselves. Th"y recruited Ambonese troops
who were rewarded with prestige and a high standard of living for their heip
(see
the boxed story below).
AMBONESE
SOLDIERS
The Ambonese
ore from the
Moluccos (now
Moluku islonds).
First colonised
by the
portuguese
in the eorly 16th ceniury, these
islonders
osked the Duich for help
to drive out the
portuguese
in 1605
Since then, the Dutch exerted
strong influence
over ihese islonds
ond exploited their resources,
especiolly
spices; The Dutch
provided
Western-siyle
educotion
to their elites, ond hired Ambonese
os soldiers in the Duich Eost lndies
Army (KNIL).
The Ambonese
were
known for their loyolty to the Dutch,
ond mony hod converted
to
Christionily.Ihe
Dutch gove
them
lwice the enlistment poy
of oiher
noiive iroops, ond the chonce for
their children to ottend Europeon
schools. Ambonese
soldiers in the
KNIL felt superior to the indigenous
people.
The Dutch encouroged
this
self-perception
to flourish in order
to hove their conlinued
support
ogoinst the indigenous
forces.
!ici-IiE +.t!
-;iibonese
soidiers
',.
tceh.1874.
iURE 4.9 Dutchforces pose
zr a victory over Acehnese
CHAPTER 4 f DUTCH COLONTAL RULE lN |NDONESIA
l3g
That state
(Acen)
remains our
weak point as far as Su&atra is
concerned. As long as it d.oes not
Iecogni,se our sovereigntp forelgn
intervention will continue to
threaten us llke the Sword of
Damoqles"
The
yiew
af the Dutch government in 1873
towards the continued independence afAceh.
,.C
truvrsfieATE TFiNS; How wos Aceh like
the Sword of Domocles?
The Sword of Damocles analogy refers to the
anxiety onefeels when they sit beneath a sword
swspended
from
a single hair of a horse's tail .
Bolinese revolts
{l
906*1 ?l2J
Like Aceh, the rulers of Bali, an independent Hindu state, resisted Dutch
expansion. The BehmeseM, {demrio etos
i**#euheeet."As,iarfor four centuries. They u;o,+ld nottnler+te.hc;ag eoft&"elled
and luaffad*&o
-pbeet {&eir."o+r*'eul&use,f.r'o#r
furetgn,inrflueneeil
Though a1'r. n*u5fu6,es-pmrtuf B&li'.@a{-qa =l*ruder
'effiireffule'in 1"W* south,ar,nGadicontinued
to reeis@ch. Between 1906 and 7912, the
Dutch attacked the small independent kingdoms
in south Bali. W'ith only sp,ffisr@lancesr
@ieo@
in"fu&iJ,e-af,ta^ek&ge'i,nst Dutch
-guns
Other reyal
bcumm*:m**upportexs"=seejrrg the situation
hop eles s, comacuitte.j
Frwprr
fgJ:r-ro,q ril.ass"
-stieadtr
The bloody defeat of Bali brought Dutch military
action in Indonesia to a close.
$ffitj&cr
4.4
140
CHAPTER 4 I DUTCH COLONIAL RULE lN INDONESIA
Yeor
1821
1825
Boli
1849
'r859
1860
r863
1870
.
Liberol
policy
(1870-1900). Dutch coloniol government instituted new lows
-
Agrorion ond Sugor Lows.
.
lnterest in outer islonds grew os new plontotions were storted there
.
The Dutch hod to proiect their economic interests through the use of militory force.
1871
.
2nd Anglo-Dutch Treoly
-
The Dutch were given o free hond throughout Sumoiro.
.
ln Europe, Germonywos creoted. Bolonce of powerwos permonently chonged.
1873
I 901 Ethicol
policy
(1g01-1g2g). The Dutch coloniol government insiituted reforms to redress the sufferings of the
locol
people, ond to fulfil iheir'debt of honour'.
1904
1906
Bolinese revolts (,l906-
1912)storted.
1912
Bolinese revolts ended.
Boliwos token bY the
Dutch.
The Dutch imPosed
control over northern Boli.
PodriWor (1821-1838)
storted.
.
Jovo Wor (1825-1830)
storted. Dutch seized
territories like Yogyokorto
ond Surokorto.
.
Johonnes von den Bosch wos sent to Jovo os
Governor Generol (,l830-33).
.
Von den Bosch instituted the Culture Syslem (,l830-
r870).
.
The Dutch onhT wonted to be involved in oreos where
they could
get profits: Jovo (coffee ond sugor) ond
Sumotro (pepper ond tin).
Podri Wor ended. The
Dutch won sovereignfY
over Minongkobou.
Rebellion in Polembong
put down by ihe Dutch.
Bonjormosin Wor (1859-
1863)storted.
Bonjormosin Wor ended.
The Dutch took south-
eostern Kolimonton.
Even ofter Dutch victorY,
resistonce continued till
'r906.
Aceh Wor ended with
Dutch victory.
EIGURE 4.10 This table summarises some key events of Dutch colonisationJrom 1821 to 1912.
L42
CHAPTER 4 . DUICH COLONIAL RULE IN INDONESIA
Whot
wcs the imocct
of Dutch
coloniol
rule
on lndonesioT
ln this inquiry you will exomine the chonges which Dutch coloniai rule brought to
lndonesio. chonges ore complex processes.
and in seeking to understond them,
you must ovoid over-simplifying
or over-generciising.
You willwri*e connmenls in
response to o fictitious blog to give q
bqlonced view of the chonges thoi come
oboui during Dutch coloniolrule"
':,;,&
Traditronal hierarchy, based on
relationship to the king.
Dutch colonial rule
-
indirect rule throuoh
the Regency System based on Dutch-
admrnrstratrve pol rcres.
FIGURE 4.11 These two diagrams
show the diference between the
traditional and Dutchforms of
government.
Irtg rrlrPdLL uI l_./uLLlL LUIUrrrar rurtr, LrluuBr[
5rgdL,
wdD urr.trvs-rrr/ rtrrL LrlruLrErrr(,LrL
Indonesia as some parts of it were colonised for a longer period than others.
Places such as
Iava,
southern Sumatra and the western I(alimantan were
under Dutch colonial rule for the longest period. Other parts of Indonesia
came under Dutch colonial control only in the 20th century. It was claimed
that some inhabitants in I(alimantan or east Indonesia did not see the face of
a Dutch official till the 1920s.
Still, Dutch colonial rule generally left a deep impact on Indonesia. By the early
20th century, the Dutch had created a state with
.
a centralised power centre at Batavia;
.
a bureaucracy of administrators;
. police and military services, postal and telecommunication services;
.
an infrastructure of roads and railways that linked rural areas to towns; and
.
a diversified economy connected to the international market.
Politicol impoct
Before the Dutch arrived, Indonesia was ruled under a traditional hierarchy
where a king was at the apex. Next in rank were the family and relatives of the
king. The more directly related to him, the higher their rank. Beneath the king
and his family were high-ranking court officials (comprising personal clients or
followers of the king) including military, civil and religious leaders. An example
of this layer of authority were the bupatis, recognised by the
|avanese
court as
the provincial heads. This was followed by the local bureaucratic elites (priyayis).
These indigenous elites could be related to the king, or chosen because of their
talent or loyalty to the king. The priyayi's manner of dress, and the location and
style of their housing set them apart from the commoners and indicated their
status as the aristocracy. In the traditional system, appointment to office was by
relation to the king, or because of loyalty to the king. There were also religious
leaders who derived their status from their religious appointments.
Tronsfer of
power from troditionol rulers to the Dutch
The Dutch instituted a form of indirect rule called the Regency System. In this
system, the Dutch colonial government held power at the top of the hierarchy,
but ruled indirectly through the traditional leaders.
The Dutch divided the territory into administrative units called residencies, each
one under the supervision of a Dutch Resident. The Dutch appointed traditional
rulers as regents. Regents were placed under the supervision of Dutch Residents,
and became officials with a clear rank in the colonial government. The Dutch,
however, helped to maintain their symbolic representations of power, such as
their manner of housing (see Figures 4.12 and 4.13 on the next page). Though
these nobles enjoyed privileges initially, their social and economic status
gradually declined as the Dutch began to impose stricter requirements that
they demonstrate competence as administrators.
144
CHAPTER 4 I DUTCH COLONIAL RULE lN INDONESIA
FIGUrIE
qtz
The regent of
Surabaya travelling to his
installation with Dutch support.
From this photograph, how ditl the
regents b enefit
frorn
co ll ab oration
wi.th the Dutch?
FIGURE 4.13 The paLace of SuLtan
van Deli o;f Medan built by the
Dutch in 1905, Prior to Dutch rule,
lte lived in o wooden house in ,.r
tillage. Hotu does this photograph
d.entonstrate how the Dutch
;tt n i tt tn i q orl i n rl irorf rrtl o?
advice on how to exercise his
British instituted in Malaya.
Traditional elites such as the bupatis also
helped run domestic affairs but they too had
to follow the orders of a Dutch Resident, The
Dutch also retained the traditional officials
from aristocratic families, the priyayis. In
collaborating with the Dutch, the priyayis
saw themselves as upholding the moral and
spilitual aspects of government.
By 7917, some 300 states and chiefdoms had
signed the Dutch
'Short
Declaration' (it was
short compared to the lengthy contracts
signed between the Dutch and local rulers
in the past). It stated that a local ruler who
recognised Dutch authority could maintain
his position, provided he received Dutch
power. This was similar to the system that the
The Dutch administration's need for a huge bureaucracy of ofllcials made it
possible for ordinary people to join the ranks of the colonial administration.
Entry was based on qualifications, and not by virtue of noble birth.
With the Dutch colonial system of government, power passed from the traditional
leaders into the hands of Dutch colonial administrators. The traditional system
of leadership based on blood relations and loyalty to the king was replaced with
a more meritocratic system based on abilities and qualifications.
However, with the system of indirect rule, the local people hardly came into
contact with the Dutch colonial masters. It helped to make Dutch control
more acceptable to the people. Indirect rule also helped to keep the colonial
government's administrative costs low In 1900, the Dutch had only 250
Europeans in the colonial administration which ruled a local population of
about 35 million.
SECUTAR: Not religious,
spirituol, or socred.
CHAPTER 4 i DUTCH COLONTAL RULE tN |NDONES|A
145
Centro lised od min istrotion
Through the system of indirect rule, the Dutch brought the territories in
Indonesia under a centralised administration at Batavia headed by a Dutch
Governor General. The inhabitants of Indonesia became subjects of the Dutch
empire. For the first time, the extensive territory comprising over 13,000 islands
came under one ruler.
The local rulers and priyayis became salaried employees of the Dutch colonial
administration. They retained their positions but lost their power to make
decisions about land, labour and property. They also lost the right to extract
taxes and require compulsory labour from the people. Hereditary rights to
office were also abolished.
With the centralised administration, the Dutch were able to extend their control
to the far-flung corners of Indonesia. This enabled them to tax the population
more efficiently and raise revenue for public projects. Government revenues
rose from 57 mlllionguilders in 1900 to 361 million guilders inl92B (equivalent
to 5$725 million to 5$4.6 billion).
Segregotion of religious ond seculCIr leodership
In pre-colonial times, the rulers of Indonesia derived their status from claims
that they had divine power to rule. But under the Dutch, Indonesia was now
ruled through a secular,
'Western-educated
elite promoted and created by the
Dutch.
After its experience in the bitter Muslim-led Aceh and
padri
'wars,
the
Dutch had become wary of Islam as a potentially anti-colonial political force.
The Dutch were careful to appoint regents whose authority came from their
family relations with the king, and not from their appointment as leaders of
Islam. The Dutch wanted to counter the influence of Islam by supporting the
secular traditional leaders against their Muslim competitors. They also needed
to maintain a balance of religious influence in a society that was not entirely
Muslim.
The Dutch often enhanced the prestige of these secular leaders with greater
privileges than what they had enjoyed before. They were conferred ranks and
titles such as Temenggong, Ario, and Adipati which enhanced their social
standing. Their economic status enabled them to maintain a lifestyle of
extravagance and splendour.
The creation of a secular leadership paved the way for the leaders of modern
Indonesia who would work for the welfare of their country without confining
their ideas to religious teachings.
146
CHAPTER 4 i DUTCH COLONTAL RULE lN INDONES|A
Bf eENTRA,LlSl N6: Tronsferring
responsibiliiies of the centrol
governrneni ro smoller bodies
of cuthority such os locol
councils.
FIGURE +.t+ Opening of the
Volksraad, Batavia 18 May
1918.
Loccl leoCers' participation
in Western-sfyle politics
In 1901, the Dutch implemented the Ethical Policy (you have read about this
earlier on page 130). They admitted that they owed a
'debt
of honour' to the
local people who had suffered from the impact of the Liberal Policy. The aim of
the Ethical Policy was to redress some of the abuses that came about under the
Liberal Policy and to improve the welfare of the people.
The Ethical Policy also had a political aim of allowing the local people some say
in the affairs of government. They did this by d*eeeatra&isitrg administrative
powers, that is, by transferring power from the central colonial government
to the districts and villages. Councils were set up at town, district and village
levels, to look into matters related to education, health and agriculture. In 1916,
the Dutch set up the Volksraad (The People's Council) to advise the Governor
General on local affairs.
However, only 30 out of its 61 seats went to the local people. The representatives
were also elected by wealthy and powerful elites, and not by the ordinary people.
Therefore, the ordinary people did not have representation in the colonial
administration. The Volksraad also had no power to make or change laws and
could only provide advice to the colonial government.
In the early 20th century, nationalist leaders who wanted to win independence
from Dutch rule joined
the volksraad in hopes that by collaborating with
the Dutch, they could gain self-rule for Indonesia. The Volksraad gave these
nationalist leaders a platform to air their views.
On the next poge is o fictitious blog where the outhor hos mode some inconect
ond over-simplified stotements obout the effecis of Dutch coloniolrule. Evoluote
the blog post using these points to help you:
.
Define the moin ideo of this post
.
ldentify the strengths of this post
.
ldeniify the weqknesses (e.9. inoccurocies, unsubstontioted cloims or
inelevont evidence)
.
Suggest improvements (e.9. provide
evidence to prove the cloim, remove
unsubstontioted cloims or inelevont evidence)
@QffiffisrrnN
CHAPTER
4 { DUTCH COLONTAL
RULE tN |NDONES|A
147
VtAGIN FOREST:
A forest in its
noturql siote, before
mon,s
development
or exploitction
Economic
impoct
The pre-colonial
states of mainland
Indonesiawere
prosperous
farming
communities.
The rich vorcanic
soils in Indones*
-rd.
the region
extremely
fertile.
Indonesia
produced
highry pr"nirnL
spices like
pepper,
nutmeg,
mace, cinnamon
and cloves, and other products
like
tobacco'
coffee and tea. Food was grown for one's o*.,
"o.,rrmption
1nd_
u9e. crops
and rivestock
were riot sord for profit
but were used to
feed the family.
The surpluses
were traded on a smal scare within the
region'
The farming
communities
were serf-sufficient
and unaffected
by the economic
situation
in the worrd. Land courd b. o*.r"a uy ,
community,
and farming
work courd be shared ry u"
""ti.e
village.
The Dutch
economic
impact
on Indonesia
was huge. Local trading
networks
and the rores of rocal traders
in pre-colonial
times were
replaced.with
a system
where European
investors
dominated.
Traditional
ways of life were changed
as subiistence-farming
*r, ,.prrced
by the
production
of cash crops. Huge tracts
of virgin forests
were cleared
to make way for cash crops rii<e tobacco
and rubber.
The Indonesian
economy
became
export-oriented.
AI these had g."rt."p".cussions
for
Indonesia.
Let us look at these in greater
detail.
THE POIITICAI
IMPACT
OF DUTCH
COTONIAL
RULE
30 SEPTEMBER
By the beginning
of the igth century. the Dutch monoged
to consoridote
control ond govern
rndonesio
os o iingre entity. For ihe firsi timl in its history,
ihe kingdoms
in rndonesio
were goruiluJos
one entity with o centrorised
odministrotion.
This creoted
o sho=red rristof
ono ideniity
omong the disporote
peoples
living in ihis vost
l:nito"
The peopie
were otso given power
in
government
through the Volksrood (people,s
Council).
v - r
v i i
COMMENTS:
?irst
o( aK, it was ttot unt,it the ray lgr:h century
or earLy zoth cewtury
chat the Dutch
extended"
their tewicori.a-(. cortrol
over r,he wt^,ite of rrtdonesia.
And. whiLe it is true that
Dutch ru@ created.
a. set, of coMMoyL
eXperiercces,
it *bo creatud. divisiows
...
write brief stotements
in the 'comments,
section to provide
o more boronced
view
on this issue. Use the prompts
to help you
I
l4g
CHAPTER 4 : DUTCH COLONIAI RULE tN TNDONESIA
Pt&!i4T&T[*l'* H$'['AT*$: Lcrge
16rry.5 vvl'1grs' co:l C,i)c: oi
gto\r',/n on ct l0rge scale.
f
YTff. A';i:VL itu tstii
"i1l
F 5:
i ndusti'ies where m0ieri0ll
such cs iin, oit, oncl coci
(]re
obtalnecJ from ihe eurtn by
driiling, niining, drrdging *r
ciuarrying.
P*netrcticn cf Western cupital
After the Liberal Policy was launched in 1870, capital flowed into Indonesia
from investors eager to develop businesses there. These capitalists were not only
Dutch but also British, French, Germans and Americans, as Dutch capitalists
were not strong enough to develop Indonesia economy by themselves. The once
self-sufficient economy was now opened to investment from outside.
lntroductlon of mcdern furnring prflct;ces
\r)Testern
capital financed scientific research on soil and the use of fertilisers. It
brought technological advances in farming techniques to Indonesia. The Dutch
established irrigation systems which increased crop yields. Capital also paid for
expensive and modern equipment, as well as the large workforces needed in the
labour-intensive industries.
Creati*n cf n*w pl*ntcti*ns snd industries
The Liberal Policy allowed for private investors to establish plantations and
mines. New pB*eataiqee* *s(*t*s and
q:qtra*{ive
iffiScastr}*s were created. They
produced crops and raw materials to be exported to other parts of the world.
Large tracts of virgin forests were razed to make room for plantations in
Sumatra or the interior of
fava.
Private investors established plantations for
rubber, tobacco, tea, sugar and coffee. Indonesia became one of the largest
suppliers of tropical products on the world market. Sumatra became the world's
largest producer of tobacco,
FIcURE +.ts Tobacco plantation in Sumatra" During Dutch rwle,
Sttmatra became one of the world's largest producers oJ tobacco.
{-rlli#f'-&- ;i ii .
*qJ{.}}'t?*!-
*}.u
'
CHAPTER 4 I DUTCH COLONIAL RULE lN INDCNESIA
149
An add.itional advantage of coffee
cultivation is the tenporary removal of
forests. They are replaced, by new trees,
which, cllmatically, are nearly as valuable
&s the orlginal ones. In ancient tiroes only
the wail of t'he d.eer felled' by the tiger
could be heard., or t'he cries of t'he monkey,
and the bellowing of the hornbill" Today
the life and industry of people and the
cheers of playing children ean be seen
there.
(Ult
Onze Kolonien
P.
755)
This is the clescription that accompanies the photograph'
(takenJrorn Van I(oL ,\lrt
Onze l(olonien
fFrom
Our
Coionies) 1903). This bttol< is the report oJ a stwdy trip Van
tr{ol had. rnade in Indonesia in 1902,
,,i)
ltlvrsrt*,&?E rl'{l$: Looking ot this source, whot
wos the opinion of the outhor obout the vclue
of ihe forests? Whot words in his descripiion tell
you obout his ottitude iowords the chonges thot
hod tcken ploce? How does this source help
you understond the chonges in the economy of
Dutch lndonesio?
Mineral industries expanded with the arrival of $irestern companies
tn
Indonesia for it's petroleum and tin found in Borneo and Sumatra. The leading
oil companywas Royal Dutch-Shell. There was also some coal mining in Borneo
and Sumatra.
The effects of these changes were great. First, it tied the Indonesian economr-
to the world economy. The prices of the products for export would rise and t-all
according to the demand for them in the countries that purchased these soods.
Now the Indonesian economy was subjected to the fluctuations of the riorld
economy.
Secondly, it created new
jobs that attracted workers, both from other par:s ::
Indonesia, as well as from outside Indonesia. These workers were attract.c l
'
the wages offered at the new plantations and mines.
Chang*s in iivelihood
The economic activities created new jobs and sources of lncome Hou-ele: ::c'
riches that these economic activities brought did not benefit much of lhe -oca-
population. Most of the profits went to the Dutch and the foreisn planrar-o;
owners and investors.
150
CHAPTER 4 , DUTCH COLONIAL RULE lN INDONESIA
FIGURE +.t6 Local people
carrying cafeeJrom a cffie
plantatian in
lava
to the
factory,
The expression'kave a java'
meaning'have a cup af coffee'
came about when Java
was the
warld's largest supplier of cffie.
e*,\!T!q&*T L&E*U & : Workers
nired ic work for a flxed neriocl
ci tirne.
e**L{ffi S*bti{AN{{: A ictri
'which
gcve piontciion owners
lhe r"ight to punish his woikeis
icooliesi in cny
'*gy-
he scw flt.
A cooii* could he punished for
i<rziness or for trying to escope.
Fr"*rn furrn*rs f* c*ntrccf workors
Under the Dutch colonial government, workers were contracted to work for
a fixed period of time in the plantations and mines as *$&et*:eiltr Ee$*spffis" in
exchange for pay. Many
]avanese
migrated to Sumatra and Borneo to look for
work. Most of these people had been farmers before and wage employment
introduced changes to their lives. Though a salaried
job offered them income,
this income was often not stable and varied with the rise and fall of the prices
of goods on the world market. Sometimes they were paid in kind, in goods from
the plantation or mining storehouses.
Their working conditions were generally pool. Malaria was a common Cause
of death in the plantations. The Dutch also passed a *#{}l}} *s"6:$iffi*aa{re which
imposed penalties on coolies who broke their contracts.'Workers who ran away
from the plantation or mine were hunted down like animals by Bataks hired by
the Dutch
(see Figure 4.17).
Chinese and Indian migrant
workers were attracted to the
economic opportunities and
came in large numbers to become
coolies, minets, shop-owners, tax-
farmers or smallhoiders. Some of
them became wealthy but most
remained poor.
FIGURE 4.17Batak warriors were employed
ta hunt tlown coolies wha broke contract
and ran awayfrom their plantations.
ruEil$i:,{*
$&umcr
4.$
Ethnlc Composition of the Plantation
Workforce in the East Coast Resid,ency,
a plantation in Sumatra
Year Chinese JaYanege Sunatran
I8B]. r5r500 rr8g7 3r518
r886 3,L;73,? 41453 7rl94
r-890 53r806 L4rg47 3r806
1 ao6
4greo4 r51908 4r566
r900
59r038 30r484 L;7?,2
1904 551e,87 34,596 tr37l
From Dwtch Colonial Annual Reports.
,"fi
tr"lvesneATr TFns: Among the plontotion lobour
force, which ethnic group formed ihe lorgest
number? Whot effects do you think the sizes of
the vorious ethnic groups might hove hod on the
locol populotion?
CHAPTER 4 ! DUTCH COLONTAL RULE tN |NDONESIA
l5l
$CIalmcE
e.lfi
f ara cnanager to Mr Herrcann, a
proprletor of tin mines at Sj.ak
I had chartered. 6 tongkangs
(Chinese
ships) to take the
coolles to Slak This raorning
about 9.50, tB cool-ies had gone
onboard. The renainder saidr'lile
won't go, you will sell us as
llttle pi5is to another country'.
Chinese recrwitment agent in the 19th
century (takenfrom Hellwig E Tagliacozzo,
The Indonesia reader: history, culture, politics
Durham: D uke University Press, 2009).
$
rruvrsrteATE Tnrs: Whot does
the source soy obout how Chinese
controct Iobour wos recruited? Whoi
does this source show obout the
exploitotion of workers?
AILF*Sl,*lt*G.&: Smoll
ns of under 50 ocres,
i or rented 1o fqrmers
cultivolion. An scre is
>roximotely the size of
>otboll field.
Creotion of smollholdings
With the Liberal Policy, tracts of land were leased to private investors for
cultivation. Though the Dutch held large plantations, their plantations did not
produce all the crops. S&tsllh*Edixrgs were also very productive. Many Asians
leased small plots of land from the Dutch colonial government and grew rubber
to supplement their traditional livelihood.
Compared to bigger plantation estates, smallholdings were less technologically
advanced, had a lower yield per tree and produced poorer quality rubber.
However, in total, smallholders had more land growing rubber trees and
produced nearly as much rubber as the bigger estates. Smallholdings also
enjoyed some flexibility. For example, when rubber prices fell, smallholders
could fall back on growing rice, the traditional crop. The creation of
smallholdings led to a new group of landowners and entrepreneurs in
Indonesia.
Creotion of o duol economy
One of the impacts of economic expansion under the Dutch during the late 19th
and early 20th centuries was the separation of the economy into two sectors.
One sector was the industrialised sector with technologically-advanced, export-
oriented industries. The other sector was rural, where natives produced crops
mainly for their own consumption.
152
CHAPTER 4 I DUTCH COLONIAL RULE lN INDONESIA
tAND At lEStATl0t*: When,
someone tokes over lond
which troditionolly belongs to
onother. Lond olienotion in this
cose is reloied to the leosing
or mortgoging of the lcnd. To
roise loqns for needs such os
seed for plonting, the noiives
give their lond os mortgoge to
the locql money-lenders or to
the rich formers. When they foil
to poy lhe loon, ihey lose iheir
lond.
WltOl"[SA,Le n5: People who
sell goods in lorge quontities,
usuolly to retoilers.
RETAITERS: People who sell
goods directly to consumers,
usuolly in smqll quontities.
THE LEAGUE OF NATIONS: AN
internotionol orgonisotion
founded ofier World Wqr I'
Its moin oims were collective
securiiY ond disormoment.
DEVAl"t!tE: Reduced the
offlciol volue of o currency in
relotion to other currencies, or
compored to gold ond silver.
FIGURE 4.1s Sugarfactory in
lava
in 1920. During the Great
Depression, the price of sugar
fell
by more than half.
The industrialised sectorwas located mainlyintowns and plantations established
by European investors. Networks of roads and railways connected these places
in
java
and Sumatra, making the remote estates of the colony more accessible,
A shipping firm, I(PM, was set up to provide sea links. The rural sector, usually
located in villages, was usually neglected by the colonial authorities. This
created a great economic divide between the people of Indonesia. it was only
during the period of the Ethical Policy that colonial officials made some effort
to bring improvements to the villages such as better sanitation.
Lond olienotion
L*.rd aiien*tiCIm became a serious problem, particularly in
fava.
In theory, the
Dutch forbade the sale of land to foreigners. In reality, however, the peasants
were forced to sell their land. Sometimes, they ended up farming
just to pay
their debts, becoming virtual tenants of their own land. Many peasants leased
their lands to Chinese money-lenders for loans (to pay taxes, for example, or to
buy seed for planting). W'hen they could not repay the loans, they were forced
to sell their crops to the creditors at fixed prices. In this way, the farmer did not
really enjoy ownership of the land, since all the produce of the land went to the
Chinese money-lender.
These Chinese would then sell the harvest to the European w[roEesalers. In this
way, the Chinese controlled the retail trade, while the Europeans dominated
wholesale trade. As a result, the standards of living of the local people
deteriorated.
Exposure to the Greot Depression
The economy of Indonesia was shattered when the Great Depression hit in the
early 1930s. The }-eague $f N*.ti*ns reported that of all countries, Indonesia
suffered the worst. This was because it relied heavily on a few exports like
sugar and rubber.
\W"hile
other countries quickly devalued their currencies,
the Dutch government refused to do it until 1936, making Indonesia's products
more expensive on the world market compared to those of other countries.
QUI!{TAL: A bqse unii ot
100 pounds or kilogromme.
CHAPTER 4 i DUTCH COIONIAL RULE lN INDONESIA
153
Between 1929 and 1934, the price of
)avanese
sugar fell from 13.66 to 5,67
guilders per quintal (equivalent to a fall from S$164 to S$71.60 today). Between
igZg and 1935, the value of agricultural exports fell from L,237 mrTlton guilders
to 294 million guilders (equivalent to a fall from S$15.7 billion to S$3.7 billion).
In 1935, 130 of the 180 sugar factories were no longer in operation.
Price of sugor (per quintol) Volue of ogricullurol exPorts
1929 1934
13.66 guilders 5.61 guilders
1928 1935
1,237 million guilders 294 million guilders
@ffiffisrc2
Evoluote the stotements
in the blog here oboui ihe
economic impoci of Dutch
coloniolrule. Use these
points to help you:
.
Define the moin ideo of
this post
.
ldenfify the strengihs of
this
post
.
ldentify the wesknesses
{e.9.
inoccurocies,
unsubstoniiofed cloims or
inelevont evidence)
.
Suggest imProvements
(e.9. provide evidence to
prove the eloim, remove
unsubstontioted cloims or
inelevont evidence)
(s$r 64)
(s$7r.60)
(S$1s.7 billion)
(S$3.7 billion)
FIGURE 4.19 Comparative prices before and afier the Great Depression.
The economic impact of the Great Depression was severe. Half of the 1,700
European employees on Sumatran plantations were dismissed.
)avanese
labourers were also retrenched or had their wages and working hours reduced.
The total wages paid to
Javanese
workers fell from 29 million guilders to 10
million guilders (equivalent to a fall from 5$368 million to S$127 million today).
80,000
)avanese
workers were sent home from east Sumatra. Many Indonesians
were forced to turn to rice cultivation or fishing to survive.
Write brief siotements in the 'Comments'section
to provide o more bolonced view
on this issue. Highlight oiher fsctors which were not mentioned, ond try to list them
in order of importonce. Use ihe prompts to help
you.
THE ECONOMIC IMPACT OF DUTCH COLONIAL RUtE
5 OCTOBER
The penetrotion of western copitol drosticolly tronsformed lndonesio's
economy, turning ii from o subsistence economy to o modern world
economy. The locol people of lndonesio benefited enormously from this
chonge. The most dromotic chonge thot offected the locol people wos
o chonge in livelihood which greotly enriched them by offering them
woge employment ond the leost impoctfulwos the creotion of o duol
economy. Aport from these two, oll the other chonges were negligible.
COMMENTS:
Dur,ch rule dld" ind"eed" cro"vtstorn
Lwdowesids ecouo(ly d"rasr,ically' \ut marty of t'he
local
VeoVle
did" vtoc beneti'c tron
these chawges...
154
CHAPTER 4 i DUTCH COLONIAL
RULE lN INDONESIA
tlNGUA. FRAt{CA: A longuoEe
thot is widelY sPoken ond
understsod even thouEh it is
noi one's notive tongue. l
Sociol imPoct
Common
longuoge
Many different lungurg", and dialects were spoken among the 13,000 islands
of Dutch-controlled
Indonesia. To simplify the administration
of the colonial
territories, the Dutch wanted to introduce a common language among.them'
After initial attempts to expand the use of the Dutch language failed, they
introduced Bahasa'Melayu
instead. Bahasa Melayu was the language used
by Malay traders, so the local people found it easier to accept as a common
language. This lingua franca gu,r. in"- a shared identity regardless which part
of Indonesia theY were from.
Creotion
of o
Plurol
societY
Indonesia experienced
a population explosion under colonial rule'
Java's
fopulation
r,r"ll.d from 3 miliion in 1800 io 41 million in 1900' The population
of the outer islands grew even more rapidly. The population
growth rate was 20
per cent in
]ava
d,rrlng the 1920s and 1930s, but above 30 per cent in the outer
islands. The higher gr:owth rate in the outer islands was largely due to internal
migration.
Chinese
migration and immigration
to Indonesia was small. A number
of Chinese entered during the time of the Liberal Policy and established
themselves as entreprer"ri,
in the opium trade, pawnshops or gambling dens'
Others worked as coolies, miners, shlp-owners,
tax-farmers
or money-lenders'
Most chinese lived in the cities and towns, although some became planters and
agricultural
labourers in the plantations of west Borneo and east Sumatra'
The
Chinese, however, did not aisimilate with the locals and remained culturally
distinct.
$CIumcE
4.11
The Chinese bave no more idea of polite &anrers than an
ape clirnbing a branch. lthen they tease the right to tax a
,1U*g"
(from tbe colonial
governrnent), tney strip it' of all
1ts crops, even down to the coconut lands, even before
the
tax 1s due. They
go to any length to clairn their rights' and'
are equally lnsigtent in demanding
payment of tolls'
Javanese
account of Chinese inJluence
(taken
from
The Emergence of Modern
Southeast Asi a, Ed. Norman d O*rn, Llniversity of Hawai'I Press, 2005).
-.Q
tuvesrtoATE THIS: How
boes this source reflect ethnic
tensions in lndonesio?
How did
the impoct of coloniolism
helP
creote o
Plurol
societY?
Urbonisotion
One of the impacts of Dutch colonial rule was rapid urbanisation'
The urban
fopulation
of Indonesia grew at a faster rate than the rural population'.By
1??0,
there were several majoicities with populations
of over 100,000 people' Cities
such as Yogyakarta and Surakarta were the old capitals of former kingdoms'
CHAPTER 4 I DUTCH COLONTAL RULE lN INDONES|A
155
Batavia was a huge city. In the early 20th century, its population grew at a rate
gf
5.5 per cent per year. Port cities such as Belawan D.ti ,lro .i-r..g"a. rt
"y facilitated the export of.primary products to the west, while han?ling thl
import of consumer goods.
There was a sharp social and economic divide between urban and rural centres.
The colonial administration
was located in the towns, while the majority of
the population lived in rural areas. The towns themselves were segregated into
quarters occupied by different groups. The Europeans lived in the eLvited, well-
drained areas which were the mosl hygienic parts of the towns. The chinese
confined themselves to living in the Chinese quarter, which also featured the
business and retail sectors. These differences created tensions in society.
Creation of Western-educoted
elites
Under the Ethical Policy, the Dutch
encouraged
'Western-style
education for the
locals. The aim was to train bureaucrats to
fill the middle and lower rungs of the colonial
administration.
'Western-style
educational
institutions
were established by the Dutch
to prepare the local people for colonial civil
service. An example is the OSVIA (School
for
Training Native Administrators),
established
in 1900 to train low-level civil servants.
Graduates of these institutes could further
their studies in Holland.
FIGURE +.zo Students of
srovlAattttebeginiLningof
the
91y:
few had enjoyed the benefits of a'Western-style
education. See Source
20th century. 4.72. By 1940,94 per cent of the population
was still illiterate.
From among the'Western-educated,
a group emerged who were familiar both
with their native and with Western cultures. So..r" of ther" later became leaders
of the nationalist movement. I(ey examples were Hatta and sjahria graduates
of STOVIA (School
for Training Native Doctors), and Sukarno, the n'ationalist
leader and later the first president of post-independence
Indonesia.
$&{}mfiE
4.1?
Oraduates of Secondary Schools 1n Indonesia, tgl0-fggg
Year
Europeans
fndonesia
Asians
L9ro
49 4
3
l-9eo
14r
l1
L7
r9e9
e5a r-57
53
r938
457 zo4 116
( Taken
fro
m Kahin, Nationalism and Revolution in Indonesia.)
,"O
truvrsrtoATE TH|S: How do the
stotistics reflecf the extent of the
chonges thot Duich coloniol
educotion brought oboui?
156
CHAPTER 4 { DUTCH COLONIAL RULE lN INDONESIA
$0uRcE
4.X3
This is o pointing from the 19th century
showing two locols from lndonesio'
One is o soldier
(in Western-style uniform)
while the other, corrying o rifle, is o slove'
fl truvrsrtoATE THls: How does this print
Gpi.t ihe sociolchonges
thoi Dutch
colonisotion
brought to lndonesio?
Deteriorotion
in stondords
of living
Lowered standards of living was one of the effects of colonialism'
From 1856
to l924,the annual consuniption
of rice among Javanese
dropped from 115 kg
to 96 kg per head. They had io sustain themselves
on cheaper alternatives
such
as maize and potatoes. Malnutrition
became a problem. This was also partly
due to a huge population expansion,
which resulted from the migration to the
plantation and mines.
The.report on Living Conditions
of Plantation Workers and Peasants on Java
in
Ds9;g40.o-pl"i.d
by the cooiie Budget Commission
in 1941 revealed the
appalling working condiiions of plantation workers and peasants in
Java'
But it
was not until the late 1920s that Dutch reforms began to improve the terms of
work for contract workers. These included a minimum wage, a 10-hour work
day, proper housing, sanitation and medical care for workers'
The goal of Dutch administration
was mainly to extract commercial
gains from
Indonesia for the Netherlands.
The bulk of the population did not enjoy material
or economic beneflts from manufacturing
or agriculture
as most of the profits
were reaped by foreign investors.
But Dutch rule did benefit a few groups such as the ruling elites or the
smallholders
who shared in the profilts of the colonial enterprise. Some-social
developments
were made during the time of the Liberal Policy and Ethical
poticyio
address the needs of the population. But these still fell short of their
goals as they were often not well-implemented'