produced 25 bales of tobacco worth f 0.48 per
pound. His persistence was proved when the
tobacco were exported to Rotterdam and later
gained high appreciation.
After the contract with Haji Jawa ended
unsatisfactorily, Nienhuys later brought Chinese
coolies from Penang Island and 88 Chinese coolies
directly from China near the planting season of
1865. At the end of 1865, they managed to produce
189 bales of good quality tobacco worth f. 2.51 per
pound in spite of the fact that they did not have any
knowledge about tobacco planting. In 1868, the
production cost reached 30,000 guilders but he
could make 67,000 guilders. The following year he
paid 36,400 guilders and made 87,200 guilders.
Nienhuys had proven that tobacco produced in Deli
was a very profitable product in the European
trading market and made Deli the world's best cigar
ingredient (S.
In order to run a larger business, more capital is
needed. Therefore, in 1869, Nienhuys founded Deli
Maatschappij, the first limited liability company
operating in the Dutch East Indies. Furthermore, he
established Senembah Maatschappij in 1871 and by
the end of 1873, there had been 15 onderneming, 13
in Deli and 1 each in Langkat and Serdang.
Arendsburg Tabak Mij. and Deli Batavia
Maatschappij were later built in 1875 and 1877
respectively. This number continued to grow, until
it reached 86 onderneming in 1884; 44 in Deli, 20
in Langkat, 9 in Serdang, and 3 in Padang Bedagai.
The expansion of onderneming in some areas
certainly took up a large area and spread out in some
areas in East Sumatra. This was due to the fact that
there were many investors making investments in
the plantation business which caused an impact on
economic improvement marked by the
establishment of new cities (Volker, 1918).
The colonial government built new cities for the
administrative centers of government, economic
activity, and the buffer zones or centers of periphery
(the onderneming in the hinterland). The colonial
cities were usually built on crossroads of roads,
railways, and rivers. Medan, for instance, originated
from the construction of Deli Maatschappij office in
1880 on the banks of the Deli River near the railway
station and the highway leading to Belawan.
Starting from here, Medan later developed into a
major city in the Residency of East Sumatra. With
similar patterns, other colonial cities were built,
such as Binjai, Tebing Tinggi, Kisaran, Pematang
Siantar and Rantau Prapat, in addition to other small
cities like Lubuk Pakam, Sungai Rampah, Pancur
Batu, Bangun Purba, and so on.
The emergence of colonial cities in strategic
places, largely due to the construction of roads and
railways, had great implications for the existence of
traditional port cities. The cutting of the old
channels with rivers as the main mode of transport
resulted in the changes of trade routes. If prior to the
construction of roads and railways river became the
main alternative where all economic activities were
conducted, then afterwards its role was largely
taken over by land transport. In fact, the source of
income of the traditional rulers was their hegemony
over the river. As a result, economic profits were
dwindling and the roles of traditional rulers were
waning. Along with this, some traditional cities
suffered setbacks; some even moved their power
centers close to newly built colonial cities. Sultanate
of Deli, for instance, Labuhan in the downstream of
Deli River to the more upstream area of Medan
Putri, moved alongside the newly developed Medan
in 1887. Afterwards, Labuhan then lost ground
(Sinar, 1986).
Sultanate of Serdang also had to move his palace
from Rantau Panjang in the downstream of the Ular
River, not to Lubuk Pakam but to Galuh
Perbaungan, a more upstream place in 1886
(Syaifuddin, 2003). Along with this, the abandoned
Rantau Panjang also suffered a setback. Later, King
of Padang also had to move its power center from
Bandar Khalifah in the downstream to the upstream
of Padang River at Bandar Sakti, Tebing Tinggi,
where the administrative center of Padang Bedagai
onder-afdeling took place. The King of Bedagai had
to move his governance office to Firdaus, Sungai
Rampah, about 6 km to the upstream of Tanjung
Beringin in the late 1920s, although the palace
remained at the downstream of Tanjung Beringin.
The development of Tanjung Beringin port city was
then like "not going anywhere" (Edi Sumarno,
2006).
5 CONCLUSIONS
From the descriptions above, it can be concluded
that the construction of roads and railways in East
Sumatra as a part of the expansion of the plantation
economy, greatly affected the existence of
"traditional port cities" in East Sumatra. The
impacts might be different, but it was still due to the
construction of land transports. The "port cities"