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Changing Economy in Indonesia Volume 1 Indonesia's Export Crops 1816-1940

Changing Economy in Indonesia A Selection of Statistical Source Material from the early 19th Century up to 1940

Volume1 Indonesia's Export Crops 1816-1940

Initiated by W.M.F. Mansvelt Re-edited and continued by P. Creutzberg

Editorial Committee P.J. van Dooren, chairman J.B.D. Derksen LateJ.A. deJonge P.W. Klein I. Schaffer

1975 Published by Martinus Nijhoff, The Hague Under the auspices o/Royal Tropical Institute, Amsterdam and a grant from the Netherlands Organization for the Advancement of Pure Research, The Hague

This book is copyright under the Berne Convention. All rights are reserved. Apart from any fair dealing for the purpose of private study, research, criticism or review, as permitted under the Copyright Act, 1956, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, electrical, chemical, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. Enquiries should be addressed to the Royal Tropical Institute, Amsterdam.

©1975 Royal Tropical Institute, Amsterdam ISBN 978-90-247-1756-9 ISBN 978-94-011-6437-5 (eBook)

10.1007/978-94-011-6437-5 DOI

Table of contents /5

Preface to the serie~ 'Changing Economy in Indonesia' f7 Acknowledgements /11

1. The material /13 1.1 Origin of this publication /13 1.2 Objectives /13 1.3 Vegetable exports /13 1.4 Types of commercial crop farm /14 1.5 Arrangement of this publication /15

2 The development of export crops /15 2.1 The export of agricultural products throughout the ages /15 2.2 Development by period /15 2.3 The Company period /16 2.4 The period of varying policy /18 2.5 The 'Cultuurstelsel' (Compulsory Cultivation Scheme) /19 2.6 The rise of plantation industry; the development of

exports from small holdings /20 2.7 Expansion and depression /21

3 Land rights /23 3.1 Arrangement of statistics according to legal title to land

holdings /23 3.2 Export crops of smallholders /23 3.3 Agriculture on high authority /23 3.4 Estates /23 3.5 Distribution of estate land according to title /23 3.6 Use of land in Java and Madura compared with estate

holdings /25 3.7 The actual use of estate land /25

4 The sources and the reliability of the statistics /26 4.1 The backbone of this work /26 4.2 'Koloniale Verslagen' (Colonial Reports) /26

Table of contents/5

4.3 'Jaarcijfers voor het Koninkrijk der Nederlanden. Kolonien' (Annual Statistical Abstracts for the Kingdom of the Netherlands. Colonies) /28

4.4 'De Landbouwexportgewassen van Nederlandsch-Indie' (Export Crops in Indonesia) /28

4.5 Other sources /28 4.6 Reliability of the statistics /28

5 General remarks on the tables /30 5.1 Presentation of data /30 5.2 Commentary on the individual tables /30 5.3 Explanation of symbols /30

Tables and commentary on the figures /33

1 Vegetable products as a proportion of total exports /33 2 Export of agricultural products from estates and

smallholders inJava and Madura and the Other Islands (1894-1940) /37

3 The export of each individual agricultural product from Java and Madura and the Other Islands in 1927 and 1938 /40

4 The output of five important crops according to type of industry (1840-1890) /45

5 The output of seven important Indonesian export crops-Summary /51

6 Estates grouped according to the title of the holdings /54 7 Cane sugar /63 8 Tea/77 9 Cinchona /85 10 Rubber /91 11 Oil palms /95 12 Coffee /99

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13 Tobacco fI13 14 Coconutproducts/125 15 Cycle of inter-island trade in coconut products /131 16 Pepper, maize and cassava products /133 17 Indigo /135

Graphs /139

I Agricultural products as a proportion of total exports, according to value /141

II Development of Indonesian export crops, according to the producers; share in the production of coffee, sugar, tea, tobacco and cinchona (1834-1890) /142

III Development of Indonesian agricultural exports, according to the producers; share in the value of the exports (1894-1940) /142

IV Output of seven important export crops /143

Bibliography /144

Preface to the series 'Changing Economy in Indonesia 1816-1940'

In 1936, Dr. W.M.F. Mansvelt, then Head of the Central Bureau of Statistics of the Netherlands Indies Government, and an experienced and recognized Dutch economic historian in his own right 1 , took the important decision of having the Bureau compile statistical data on the economic history ofIndonesia in the 19th and 20th centuries. Mansvelt,justifiably, was concerned that the economic history of Indonesia had up to that time lacked adequate statistical foundation and hence analytical precision. He considered that by using figures gathered from archives and publications, it should be possible to compile sets of statistics, in a manner permitting ready comparison, showing annual figures for various areas of economic activity, e.g. Indonesia's trade and shipping, relations with the ~etherlands and Singapore in this regard, export crops and prices. It was soon found that data for most of the tables existed as far back as the early nineteenth century, and that the tables could be continued from then without gaps through to 1937. Mansvelt added an analysis of the first trading houses in Indonesia in the first half of the nineteenth century, and concluded with a general statement about economic trends, based on the data compiled. Mansvelt's project initially went very well. Through the efforts of the Central Bureau of Statistics' staff, ten volumes of the series had already been printed between 1936 and 1939. Some of these volumes were, however, incomplete, and in certain respects the publications were provisional in nature. Although the data were recorded properly, they were not in most cases accompanied by a general commentary. War was threatening: the Central Bureau had other tasks to perform: Mansvelt himself was obliged to undertake

1 Mansvelt, W.M.F.: Rechtsvorm engeldelijk beheer bij de Oost·Indische Compagnie (Legal Status and Financial Administration of the Dutch East Indian Company). Amsterdam, 1922 (dissertation). Mansvelt, W.M. F.: Geschiedenis van de Nederlandsche Handel-Maatschappij 1824-1924 (History of the Netherlands' Trading Society 1824-1924),2 vols. Haarlem (The Netherlands), 1924-1926.

Preface to the series/7

new tasks; and the short time in which the publications were prepared did not permit such commentaries. Some of the publications were in fact intended as no more than drafts. The Second World War, which engulfed the Netherlands in May 1940 and overtook Indonesia from December 1941, when it became Japanese occupied territory, put a halt to the series. Of the volumes that had already been published in Jakarta, only a few copies were received in the Netherlands. It was not until long after the War was over that the remainder of the printed volumes, which were still provisional drafts, were discovered in the possession of private individuals 2 . Mansvelt himself died during the military confusion and nationalist uprising inJava shortly after theJapanese capitulation.

2 The complete series, now in the libraries of the Central Statistical Office, The Hague, and the Royal Tropical Institute, Amsterdam, comprises the volumes listed below. Those marked * are incomplete drafts presumably with a limited circulation. Only No.160 was fully completed by or under the supervision of Dr. Mansvelt. The provisionally printed manuscripts were found to be in the possession of Prof. W.P. Coolhaas at Bilthoven (The Netherlands), who made them available to the above libraries for photocopying. The titles (translated) of the 'Mededeelingen van het Centraal Kantoor voor de Statistiek' (Central Bureau of Statistics Information) published between 1936 and 1939, are: No. 160 Trade Statistics, Java 1823-1873

161 Trade Statistics, Indonesia 1874-1937* 162 Trade with Singapore 1825-1937* 163 Trade and Shipping Connections with the Netherlands 1823-1937 * 164 Shipping Statistics, Indonesia 1832-1937 165 Export Crops, Indonesia 1840-1937* 166 Indonesian Prices 1840-1937 * 167 Indonesia's Economic Development 1823-193 7* 168 The first Trading Houses in Indonesia 1817-1862

Published in the 'Korte Mededeelingen van het Centraal Kantoor voor de Statistiek' (Short Information ofthe Central Bureau of Statistics) No. 14, by W.M.F. Mansvelt, Batavia U akarta) , 1937: Prau Sailing in Indonesia. The 'Koninklijke Bibliotheek' (Royal Library), The Hague, has kindly made enquiries and found that vols.160, 164, 165 and 168 can also be consulted in the Leyden, Groningen, Tilburg and Wageningen university libraries and in the 'Handelseconomische Bibliotheek' (Commerce Library), Amsterdam. A number of other libraries, too, house some of these volumes.

8/Preface to the series

The efforts of Manvelt and the Central Bureau of Statistics did not however deserve to be forgotten or neglected. The considerations which had induced Mansvelt to produce his statistical series remained valid. Mansvelt had indicated what possibilities there were for clearer economic-historical insight and how statistical material could be used to bring these possibilities OUI. .\ll the effort and energy that had gone into the collection of that material deserved more recognition than would have been shown if no more than a few copies of part of the incomplete series had been kept hidden in a number of Dutch libraries. An appreciation of this fact and a feeling that he must do justice to the work led Mr P. Creutzberg to re-edit the old series. Other work on which he had been engaged had brought him into contact with the few publications that were in circulation, and it was in the course of this work that he had come across the draft manuscripts, at that time unknown in the Netherlands. Creutzberg, who was familiar with economic policy and statistical work as a civil servant in Jakarta before the war - he started his career at the Central Bureau of Statistics and finished as a senior civil servant in the Department of Economic Affairs - was the best-placed and -qualified person to undertake the job of settling the debt of honour. As the editor of three large volumes of source material relating to economic policy in Indonesia from 1900 to 1942 3 he had an unrivalled grasp of the motives behind and the atmosphere surrounding the formation and partial materialisation of Mansvelt's plans. The considerable experience he had built up in researching the sources made him appreciate the manner in which Mansvelt and his statisticians had collected their figures. Moreover, Creutzberg was convinced that it was not enough to reprint the volumes that had appeared between 1936 and 1939 and which had now become rare. The figures already collected needed, if possible, to be rounded offto include the years up to 1940, the last year before the war overtook Indonesia. It was possible, on the basis of source material and publications held in the Dutch colonial archives, to supplement a number of the series, improve them and, in some cases, to take them back

3 Creutzberg, P.: Het ekonomisch beleid in Nederlandsch-Indie {Economic Policy in the Netherlands Indies}. Issued by the 'Commissie voor Bronnenpublicatie betreffende de geschiedenis van Nederlandsch-Indie 1900-1942' of the 'N ederlandsch Historisch Genootschap', 3 parts, nos. 5-7 (no. 7 printing). Groningen (The Netherlands), 1972, 1974.

to earlier periods in the 19th century. In addition, he came to the conclusion that separate figures could be collected on many other spheres of economic activity as well. In particular, more attention than Mansvelt had felt necessary needed to be focussed - in so far as there was material available - on economic changes within the Indonesian community itself. Mansvelt's figures were strongly biased towards western enterprises and related to - it seemed were almost programmed towards - Indonesia's position in world trade and the economic activities carried out there under the leadership of European~ 4. The series 'Changing Economy in Indonesia', while continuing the work undertaken by Mansvelt and the Central Bureau of Statistics inJakarta between 1936 and 1939, will thus be more up to date and much more comprehensive than the original series, which appeared as 'Mededeelingen van het Centraal Kantoor voor de Statistiek' (Central Bureau of Statistics Information). When the entire series of 'Changing Economy in Indonesia' is eventually published - and this should occur within the next few years if work progresses at a reasonable pace - there will, it is hoped, be annual figures on the following subjects, which will make up at least 14 to 16 volumes:

Indonesia's Export Crops 1816-1940 Public Finance 1816-1939 Corporate Investments in Indonesia 1910-1940, with some earlier data Rice Prices 1816-1940 National Income 1920-1940, with some earlier data Trade Statistics, Java 1823-1873 The Monetary System 1816-1940 Balance of Payments 1816-1940 Production of Foodstuffs Manufacturing Industry Mining Trade Statistics, Indonesia 1874-1940

4 MansveIt, W.M. F.: De economische samenwerking tusschen Nederland en Nederlandsch-Indie (Economic Co-operation between The Netherlands and Indonesia), Koloniale Studien (1938), Vol. 22, part 2, pp. 127-154.

Trade between the Netherlands and Indonesia 1824-1940 Trade with Singapore 1824-1940 Indonesian Shipping 1825-1940

Prau Sailing in Indonesia 1824-1940 Rail Transport 1867-1940 Wholesale Prices of Imported Goods and Export Products 1824-1940 Domestic Prices Business Cycles 1816-1940

Apart from the essay on national income, which was written for limited circulation as early as 1943 by Dr. J.J. Polak, now Economic Councillor of the International Monetary Fund, and who made it available for publication in the 'Changing Economy in Indonesia' 5 ,it appears likely that the present series will be compiled and prepared for publication by Creutzberg himself. The preparatory work for all these volumes is already at an advanced stage, but the order in which the different subjects will be arranged has not yet been decided. It is natural that the pioneering work which was largely carried out both by Mansvelt and his staff and by Creutzberg should affect the type and usefulness ofthe material to be published. As a rule the figures have been kept as close to the original data as possible. In a few cases, however, it was necessary to adapt data of the source material to the uniform definition covering the time period for the study as a whole. In these instances reference to the original sources has been included, so that the reader may readily trace the figures back to their origin. Each volume is introduced with a detailed technical explanation ofthe problems connected with the source material and the manner in which the material was fitted into the time-series. These introductions also include more general information on the economic history of the period as it relates to the subject under review. Such information will, at least in part, put the figures into perspective and may help explain some of the developments and problems which they illustrate.

5 Polak,J.J.: The Nationalincome in the Netherlands Indies 1921-1939. New York, 1943 (manuscript). Can be consulted in the libraries of the Erasmus University, Rotterdam; the Central Statistical Office, The Hague; and the Royal Tropical Institute, Amsterdam.

Preface to the series/9

There remains, however, one caveat, which affects all historical statistics (Mitchell refers to it in a similar collection of statistics relating to Great Britain 6 ): it is always found in practice that flaws in the material do not come to light until the material is used analytically. Generally speaking, in compiling the tables of figures, most published sources of original statistical material of any relevance have been consulted. As regards sources in the Netherlands, the most important and the most likely archive collections have been studied. Unavoidably it is in the very nature of statistical research that new finds may always be made-data that supplement or even modify that which has already been published. Thus the archives in Indonesia may still have something to offer, although it is reassuring to reflect that central administrative and policy information of a general nature on Indonesia was always sent to the Netherlands, where it was retained. But since the modern archives in Indonesia are as yet not accessible - owing to the lack of staff much of the material has still to be arranged and catalogued - and since there could hardly be much new material for the general data required, the idea of carrying out research there had to be abandoned. A more important matter is a different sort of deficiency which this series displays. Published material and material in archives have been used only to extract general information. Much of the material that lent itself to more detailed study is therefore not included or elaborated upon. It should be noted, however, that all the volumes in this series give the sources and literature used, so that readers can refer without difficulty to the books and archive collections concerned if additional information is required. Users are therefore urged to familiarise themselves thoroughly with the introductions to the sets of figures, since they will describe the limitations of the figures and the possibilities for further research. Though such a request may possibly prove unnecessary, the editorial committee and the compiler would be greatly obliged if readers could assist by notifying them, at the earliest possible opportunity, of any errors or omissions they might discover in the texts, so that these can be kept in

6 Mitchell, B.R.: Abstract of British Historical Statistics, part VII. Cambridge, 1962.

lO/Preface to the series

mind when preparing the next publications. An addenda and errata section will if necessary be included in the last volume. The death in early May this year of our deeply respected colleague, J. A. deJonge, Professor of Economic History at the Free University of Amsterdam, was a great loss for the Commission. It saddened us especially that he did not live to see the publication of the first of the five volumes, to which his scholarship and sense of style and proportion contributed so much. His loss is, in particular, felt by P. Creutzberg, the compiler of the statistical series, who is under a special sense of obligation to Professor Dejonge for his kind, pertinent and constructive criticism in the final preparation of the first five manuscripts. For us all, his passing leaves a great gap, and we will miss him in the continuation of our work. In tribute to the active part he played in our work; and the encouragement we have received from him, we have decided to retain his name among the members of the Commission in the first five volumes. The editors would like to thank all those who have made the publication of this series possible. The committee is grateful first of all to the directors and the board of the Royal Tropical Institute, who have agreed to publish the series and who have provided all the help and guidance needed. The 'Nederlandse Organisatie voor Zuiver Wetenschappelijk Onderzoek' (Netherlands Organisation for the Advancement of Pure Research), in undertaking to subsidise the series, has shown a most welcome appreciation of the latter's national and international significance. From a number of experts Creutzberg has received invaluable aid and a considerable amount of advice. Though only a small group of names can be mentioned at the beginning of this series it is hoped that many more names can be listed when the series is completed in a few years' time. Creutzberg has been greatly assisted by the heads and staff of the archives of the former 'Ministerie voor Overzeesche Gebiedsdelen' (Ministry of Overseas Dominions), the 'Algemeen Rijksarchief' (General State Archives), the Royal Tropical Institute Library and the Second Chamber of the States General Library. Those who have offered help in specific fields will be mentioned by name in the relevant volumes later. Obviously many others have been connected with the work in a more general fashion through the help and advice they provided. Although they cannot all be separately mentioned this

does not mean that the committee and the editor have not appreciated their contributions vcry much. An exception must be made in the case of the late Dr. Mansvelt's good friend, Prof. I.J. Brugmans. The part he played in setting up this edition and the encouragement he gave particularly in the difficult early years when the publication plan had not yet been determined have been most valuable. Later it was G. Scholte who with his specialist knowledge as former head of the Central Bureau of Statistics in Indonesia gave his help. Our gratitude also goes to Prof. W.Ph. Coolhaas who has been so kind as to make available the provisionally printed manuscripts (p. 7 and note 2). And last but of course not least the commIttec would express it's thanks and gratitude to the compiler, Creutzberg, himself, who has undertaken a formidable task, part of which he has already completed. Through his initiative and his willingness to do the spade work, the debt of honour towards Dr. Mansvclt and his staff is indeed being discharged and he is doing present and future students of Indonesian history an inestimable favour.

The committee of editors,

Dr. P.J . van Dooren, chairman Dr. J .B.D. Derksen Late Prof. J .A. de J onge Prof. P.W. Klein Prof. I. Schaffer

Acknowledgements

In the preface to this series reference has already been made to many institutions and fellow-workers in our field whose generous help is indispensable when bringing out publications such as ours. It is well-nigh impossible to thank them individually, so if I do single out a few who deserve special mention for their contribution to this volume in terms of time, thoughts or otherwise, this does not detract from the debt of gratitude owing to the others. Next to those mentioned in the preface to the series 'Changing Economy in Indonesia', I should like to record my indebtedness to: the late Dr. I.J. Duyverman, who never ceased to give encouragement to our efforts, in whiclt he took a lively interest; Dr.J. W. F. Arriens for the translation of final changes in the manuscript, adding valuable suggestions for improving style and composition; Dr. C. Fasseur for supplying important data from his study on the history of the Compulsory Cultivation Scheme in Java and for his much appreciated suggestions when a descriptive analysis of that period had to be written; Prof. Dr. G. Giesberger for reading through my manuscript; The staff of the Central Library, from the Librarian down, for their patience in producing the endless stream of source-material from the resources of the Royal Tropical Institute. In particular mention should be made of those staff members who were entrusted with the printing of this first volume fraught with problems of lay-out and composing of the print; M. W. van Wyngen for translating a Dutch manuscript which has presented some rather knotty technical problems; Finally, I should like to make special mention of J. Th. M. van Laanen, my assistant, who never failed in his devotion to our ambitious project. It is mainly due to his unflagging zeal in tracking down important details, and to his feeling for the proper arrangement of the subject-matter that we were able to design a useful prototype for the volumes to come.

Aknowledgments/ll