Colonization of the Dutch government

After the VOC went bankrupt in the late 18th century and after a short British rule under Thomas Stamford Raffles, the Dutch government took over ownership of the VOC in the year 1816. A successful rebellion was crushed in Java Java War in 1825-1830. After the year 1830 the compulsory system, known as cultuurstelsel in Dutch began to be applied. In this system, the residents were forced to plant the results of the plantation into the world market demand at the time, like tea, coffee etc.. Yield was then exported to foreign countries. These systems bring great wealth to the executive - both the Dutch and the Indonesian. This cultivation system is a government monopoly and was abolished in that time more freely after 1870.

In 1901 the Dutch adopted what they called the Ethical Policy (Dutch: a political Ethische), which included greater investment in education for indigenous people, and little political change. Under the governor-generals J.B. van Heutsz Dutch East Indies government to extend direct colonial rule throughout the Dutch East Indies, and thereby establish the foundation for the current state of Indonesia.

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