Dutch Colonial Strategy Reduces The High Price Of Rice Prices

Scarcity and increase in rice prices occurred during the Dutch colonial period in Indonesia. (Wikimedia Commons)

JAKARTA - The impact of World War I has been felt throughout the archipelago. The economic crisis that brought panic arose everywhere. Prices of basic necessities soared. Rice prices, especially. The Dutch colonial government took a stand.

The strategy is played to reduce the anger of the people because the price of rice is expensive. The owner of power strictly prohibits rice exports, even if it is profitable. The plantation owners are forced to provide land to name rice. Anyone who hoards rice stocks is also severely punished.

The destructive power of World War I (1914-1918) to economic activity around the earth is second to none. In the Dutch East Indies (now: Indonesia), moreover. The war had to be paid dearly with the domino effect of economic chaos.

The domino effect stems from the confiscation of the produce of the Dutch East Indies by a warring country. In fact, the produce could produce large income coffers for the Dutch colonialists.

The confiscation made the Dutch colonialists lose money. The impact is everywhere. Prices of basic necessities increased, while income decreased. This condition made all the people of the Dutch East Indies, especially the natives, have to bear the nestapa.

They became victims because they depended on income from the agricultural and plantation sectors. A condition that can be described with slander, has fallen down a ladder.

Rice, known as staple food, began to soar far away. Many people are getting overwhelmed. They have no other option but to owe it to get rice. This condition is taught because in various parts of the world there is hunger due to war.

Colonial colonizers, especially entrepreneurs, must be wise in making decisions. However, it was not done. Instead, they chose to export rice because of high demand and benefits. Ignorance is actually paid a lot of money.

Rice like a rare item is expensive in the country. The Dutch Colonizers began to worry. They felt that the price of rice had to be stabilized immediately. Everything is because social turmoil due to scarcity can make the natives move against the domination of the Dutch colonialists.

In addition, the government is expanding its arrangements by taking over all rice trading. The government immediately bought all rice production after the main harvest as a form of prevention of possible price increases that traders often do.

"During the famine or shortfall, traders hoarding rice supplies will make a big profit. International developments that closed almost all rice markets have prompted the colonial government to regulate the supply and expansion of rice planting. Furthermore, a government regulation determines that all large plantations outside Java must provide part of the land for planting rice and keep rice shortages from occurring," said Marwati Djoened Poesponegoro and friends in the book Indonesian National History Volume V (2008).

The Dutch colonialists did not only set aside a few steps to overcome the high price of rice. The owner of power also stepped down to provide many other steps, from usual solutions to steps that brought a stir.

The colonial government also found out the root of the problem of scarcity of rice. They found fact that many businessmen/traders actually took advantage of the issue of World War I to hoard rice stocks. Rice is deliberately left scarce in the market.

The goal is to increase rice prices. In accordance with the narrative of economic science: supply and demand. Dutch colonizers do not want to give up. The government must not lose. colonial government officials moved to launch operations to clean up expensive rice prices.

Whoever is caught hoarding will be confiscated their stock. Moreover, they must face severe penalties to prison confinement. The effort was successful for a while. The colonial government did not forget to use the mass media to spread fear (fear mining).

Messages confirm that those who apply to oppose the government by hoarding rice stocks will be punished. The goal is that more and more entrepreneurs will repent and stop hoarding rice stocks, even though the warning does not have much impact.

Stockpiling is threatened with stock confiscation. As an additional threat, the Attorney General sent circulars to newspapers that appeared to contain requests for assistance so that the editors reminded the public that the Criminal Code regulates penalties for the spread of irresponsible rumors to influence prices.

"Don't forget he mentioned that regulations on the press allow action against the spread of false news intentionally. The loading of misleading rumors in newspapers, even if the editors don't know that the news is not true, can be punished. A useless warning. The newspapers continue to report rising public prices and panic, "said Kees van Dijk in the bookHindia Netherlands and World War I 1914 1918(2013).