Capitalism, Plantation Industry, and Environmental Change: East Sumatra During the Late Dutch Colonial State in Indonesia

¹ Doctoral Program of History, Faculty of Humanities, Universitas Diponegoro, Indonesia
² Department of History. Faculty of Arts & Social Sciences, University Malaya, Malaysia

Abstract

This paper departs from the problem of the conspiracy between capitalism and imperialism and modern colonialism which has become a powerful force to exploit the environment in order to meet the demands of industrialization and modernization of society in capitalist countries. Some research questions that will be answered in this paper are why the East Sumatra region is a frontier area that is contested by the capitalists to expand their capital in this region? How did the various colonial powers compete for control of this region? How was the expansion of the plantation industry during the late Dutch colonial period? The results of the study show that the East Sumatra region is a potential area for the plantation industry (tobacco, rubber, tea, etc.). It is not surprising that the main colonial powers in Southeast Asia tried to control this region, especially the Netherlands and England. Various approaches were taken to negotiate with local authorities to obtain the right to control this area. Finally, from the second half of the 19th century until the end of the colonial government in Indonesia, the plantation industry in this region developed remarkably.