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The Arrival of European Powers (1500–1800)

In: The Political Economy of Indonesia’s Economic Development, Volume I

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  • Sangaralingam Ramesh

    (University of Oxford and University College London)

Abstract

This chapter analyzes the formalization of Dutch colonial rule under the Cultivation System, which required peasants to produce cash crops such as sugar, coffee, and indigo for export. While generating significant revenues for the Netherlands, the system entrenched peasant poverty, land alienation, and food insecurity in Java. The chapter draws on colonial records and contemporary critiques (including those by Multatuli) to demonstrate the human cost of economic exploitation. It also notes the rise of a bureaucratic elite and infrastructure development as unintended outcomes. Mounting criticism led to the gradual dismantling of the system and the beginning of liberal economic reforms.

Suggested Citation

  • Sangaralingam Ramesh, 2025. "The Arrival of European Powers (1500–1800)," Springer Books, in: The Political Economy of Indonesia’s Economic Development, Volume I, chapter 0, pages 183-228, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-94350-8_5
    DOI: 10.1007/978-3-031-94350-8_5
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