COLONIAL STATE FORMATION AND PATTERNS OF ECONOMIC DEVELOPMENT IN JAVA, 1800-1913

During the 19th century Java was one of the most thoroughly colonized societies in the world, small number of Dutch
administrators influence on the social and economic development of the island was relatively significant. The state almost
continually experimented with new ways of controlling the indigenous population, of lying taxes and of improving export
production in order to increase the economic fortunes of the island. The main goal of the paper is to analyses the different
experiments in colonial state formation that were carried out between 1800 and 1913. One of the new elements included
in this paper that the analysis of Javanese economic development can now be based on a project that measures the growth
of GDP and its components between 1815 and 1913.

There are three types of societies coexisted on the island: indigenous Javanese, colonial nexus of former Dutch East India
Company (VOC) and a comprador group consisting of Chinese, Arab, and India merchants. The basic structure of
Javanese society was feudal. An important characteristic of this system is that it is highly flexible. The VOC had already,
during 17th and 18th centuries, learned how to use this feudal system of surplus extraction for its own purposes. The
coexistence of a Dutch colonial nexus and an indigenous feudal society was made possible by the intermediate role played
by merchants from China, India, and the Arab world particular Chinese merchants.

First quarter of 19th century was a period of reform and experimentation aimed at the creation of more or less modern
colonial state. There are three stages: first phase initiated by the new Governor-General Daendels in 1808-1811, between
1811 and 1816 the British controlled the colony and introduced their own ideas and practices, and between 1816 and 1826
the Dutch resumed their attempts by Governor-General Van der Capellen. G-G Daendels aims to create a modern, formal
bureaucracy. During the Raffles era, he attempted to introduce a modern market-oriented economy. Under G-G Van der
Capellen he continues the reformation. The reforms were successful to centralized state built on a newly modern
bureaucracy. But in this system feudal exploitation by indigenous elite was embraced, so Van der Capellen want to end it,
also this system cost very much for the colonial state. In 182- these problems triggered a crisis which resulted in the Java
war between colonial state and the indigenous elites. After this, new Dutch King, William I, order to cut and expenditure
that will cost much for the colonial include all kinds of modernizing that proposed by Van der Capellen.

Van den Bosch introduced the new system called the Cultivation System. This system aimed to stimulate export
agriculture. At the first, the system worked quite well. Not only local elites that incorporated into the new system, Chinese
merchants also played a large role. They supplied much of the new entrepreneurship and expertise for the first phase of
expansion. An additional reason why the system functioned well initially was that the government was spending a large
amount of money in return for the export crops. However, the prosperity in 1830s was followed by famines in 1840s.
Exports of coffee and sugar went up very fast, but a large part of profits was skimmed off by the colonial state. Export
agriculture remained the most important economic basis of the colonial regime. The official declaration that the Dutch
state considered it its duty to improve Indonesian welfare is considered to be a watershed in Dutch politics. In 1901 the
introduction of welfare services aimed at improving the economy and living standards of the indigenous population. From
1890 until 1913, the economic growth clearly accelerated because of policies. Per capita consumption levels also increase
and peasant agriculture began to contribute significantly to the productivity growth. It was as a response of more favorable
conditions existing in rural markets.

By:
Johan Kurniawan / 141521435
Eka Setyaningsih / 141521474
Natya Nindyagitaya / 141521573