The 19th century was the turning point of Dutch colonialism in Indonesia. The Java war led by Prince Diponegoro had drained the energy and budget of the Dutch colonial government in Indonesia. After the 5-year war ended, the Dutch colonial government was on the verge of bankruptcy.
To overcome the budget deficit, Governor-General Johannes van den Bosch introduced the cultuurstelsel policy in which the Javanese were required to grow export crops that were selling well in Europe. This policy caused a famine in Java because the people were forced to grow sugar, coffee, tea and tobacco instead of rice, which is the people's staple food.
This policy brought tremendous benefits to the Dutch colonial government, the state treasury which had been empty was immediately filled. The Dutch colonial government considered this policy a great success even though it caused a famine that killed tens of thousands of people in Java.
After seeing the very profitable plantation results, the Dutch colonial government made a law that allowed the private sector to participate in managing large land for plantations. Coupled with a series of other laws that made the Dutch East Indies more open and attractive to investors.
At the same time, the 19th century was filled with revolutions that allowed the flow of people, goods and capital to flow more rapidly from Europe to Asia. The invention of the steam engine which led to the creation of steamships, the invention of the telegraph, and the opening of the Suez Canal brought Europe and Asia closer together.
These various things have made Dutch companies invest in Indonesia. The investment also brought workers from the Netherlands, many Dutch civilians eventually settled in Indonesia.
The photo above shows Dutch people sitting on the terrace of a house in Java, 1915-1925. The house in the photo is very typical of old Javanese houses that are still commonly found today.
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