E-ISSN: 2798-4907
Volume 5, Nomor 1 (Januari 2025), 23-32
Oosthoek Sugar Eden: The colonial sugar industry in
Panaroekan
Nurul Maghfiroh*.
Universitas Gadjah Mada, Jl. Sosiohumaniora No. 1, Daerah Istimewa Yogyakarta, 55281, nurul
[email protected]
Abstract
Sugar has been indispensable in the global economy over the past nineteenth century. New
lands were being explored to become sugar-producing areas, not least Panaroekan. During
the colonial period, several sugar factories were constructed in Panaroekan. In addition,
some of these sugar mills are still in operation. Based on this research background, this
paper examines the history of the sugar industry in Panaroekan during the colonial period.
In addition, this research also aims to identify the varying factors that drove the growing
sugar industry in the region. This research will use the historical approach as a method to
reconstruct events in the past. Based on the research conducted, it is known that the area's
fertility and the existence of low-cost labor were the major factors that prompted the
accelerated growth of the sugar industry in Panaroekan. This made the area an important
sugar manufacturer in the Eastern part of Java.
Keywords
sugar; the sugar industry; Panaroekan; colonial policy.
Abstrak
Gula menempati posisi yang penting dalam perekonomian global di sepanjang abad ke
sembilan belas. Daerah-daerah baru di eksplorasi menjadi kawasan penghasil gula tidak
terkecuali Panaroekan. Pada masa kolonial didirikan beberapa pabrik gula di Panaroekan.
Bahkan beberapa pabrik gula tersebut masih beroperasi hingga saat ini. Berdasarkan
latar belakang tersebut, maka kajian ini membahas bagaimana perkembangan industri
gula di Panaroekan selama periode kolonial. Selain itu, penelitian ini bertujuan untuk
mengidentifikasi berbagai faktor yang mendorong pertumbuhan industri gula di wilayah
tersebut. Penelitian akan menggunakan pendekatan sejarah sebagai metode untuk
merekonstruksi peristiwa di masa lampau. Berdasarkan penelitian yang dilakukan
diketahui bahwa kesuburan wilayah dan ketersediaan tenaga kerja yang murah menjadi
faktor utama yang mendorong percepatan pertumbuhan industri gula di Panaroekan.
Sehingga menjadikan kawasan ini sebagai penghasil gula yang penting di ujung timur
Pulau Jawa.
Kata kunci
gula; industri gula; Panaroekan; kebijakan kolonial.
*Received: October 21st, 2024 *Accepted: January 25th, 2025
*Revised: January 13rd, 2025 *Published: January 31st, 2025
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Volume 5, Nomor 1 (Januari 2025), halaman 23-32
INTRODUCTION
In the last decade, the sugar industry in Indonesia has faced an alarming
condition. This situation is due to the decreasing national sugar production rate while
the demand for sugar continues to increase. Instead of securing national stocks, the
government issued a policy to import sugar. The government through the Ministry of
Trade (MoT) has opened the tap for sugar imports in Indonesia. The implementation of
this regulation is referred to as Permendagri (Minister of Trade Regulation) No. 117/M-
DAG/PER/12/2015. Based on the regulation, the categories of sugar that are allowed to
be imported include raw crystal sugar/crude sugar, refined crystal sugar, and white
crystal sugar. Based on the Data from the Ministry of Agriculture, during the period
2014-2016, the sugar production rate was only 2.5 million tons. Meanwhile, the
domestic sugar consumption reached 5.5 million tons per year (Ministry of Agriculture,
2017). In 2024 sugar imports are estimated to reach 5.4 million tons. This figure makes
Indonesia the largest sugar importer in the world (CNBC, 2023).
This condition is inversely comparable to the situation in Indonesia two
centuries ago. At that time, the sugar industry in Indonesia experienced rapid
development. The Dutch Colonial Government built sugar factories all over Java, one of
which was in Panaroekan. It cannot be denied that the sugar industry was one of the
important sectors in the economy in the Dutch East Indies. Thus, various efforts were
made by the government to succeed this industrialization process. The years 1830-1920
are known as the “Golden Age” of the sugar industry in Java.
Domestic sugar production was not only fulfilling national consumption but also
the needs of the global market. It was even able to supply the needs of the global market
so at that time the success of the sugar industry led Indonesia to become the second-
largest sugar-exporting country after Cuba (Bosma, 2023). This certainly might not
happen overnight. The intervention of the government through colonial policies in
supporting the development of the sugar industry was allegedly one of the key factors
that led Indonesia to become the "King of Sugar" in that age. Elson mentioned that the
sugar industry was very well organized in Java. This is because the population is
relatively dense so the need for labor in the sugar industry can be fulfilled (Elson, 1984).
As for Panaroekan, the sugar industry in this region flourished from the mid-
nineteenth century to the early twentieth century. Eight sugar factories were operating
in the region before the malaise crisis. This condition made Panaroekan one of the
important areas of sugar industry development in the Karesidenan Besoeki during the
colonial period. And yet, some of the sugar factories in Panaroekan are still operating
today. It is certainly interesting to discuss the development of the sugar industry in this
area. Unfortunately, studies on the history of the sugar industry in this region are
severely limited. Moreover, studies of the sugar industry are often centered on a few
areas in central Java or Vorstenlanden.
Studies on the development of the sugar industry in Panaroekan have actually
been mentioned by several experts. However, most of the previous researchers
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Volume 5, Nomor 1 (Januari 2025), halaman 23-32
discussed the sugar industry in the period after independence. Nursiyah (2013) in her
article entitled “Pasang Surut Pabrik Gula De Maas di Desa Kalimas Kecamatan Besuki
Kabupaten Situbondo Pada Tahun 1977 – 2000” only discusses how the dynamics of de
Maas sugar factory in the contemporary period. In addition, Daliarna (2014) in his
research entitled ““Perkembangan Pabrik Gula Wringin Anom Kecamatan Desa Wringin
Anom Kecamatan Panarukan Kabupaten Situbondo Tahun 1998 – 2010” for example
only discusses the Wringin Anom sugar factory. The periodization taken was quite
contemporary. Furthermore, there is a study by Utari (2014) entitled ““Pabrik Gula
Panjdie Terhadap Kondisi Sosial Ekonomi Masyarakat Kecamatan Panji Kabupaten
Situbondo Pada Tahun 1998 – 2008”. In these articles, it was found that there were
several mistakes in the writings that resulted in ahistorical articles. Then the last one,
Nurcahyo (2011) in his work entitled “Tata Kelola Industri Gula di Situbondo Masa
Kolonial dan Kebijakan Pergulaan Masa Kini” only discusses how sugar management in
Situbondo before and after the malaise crisis. This research does not explain how
exactly the sugar industry first developed in Situbondo (Panaroekan).
Based on this background, this study discusses the colonial sugar industry in
Panaroekan. The novelty of this study lies in the fact that there is no single study that
discusses the development of the sugar industry in Panaroekan during the colonial
period. This study also elaborates that Panaroekan's success as one of the leading sugar
producers in East Java was not only influenced by colonial policies. This shows the
interconnectivity between colonial policies and the natural conditions and society in
Panaroekan.
METHOD
This research uses the historical method, according to Kuntowijoyo, the use of
the historical method can provide a detailed overview from beginning to end so that
critical analytical research outcomes are obtained (Kuntowijoyo 2013). The method
consists of topic selection, heuristics, verification or source criticism, interpretation and
historiography. Heuristics means collecting sources and determining the topic of the
problem to be studied in research. So before conducting historical research, the author
can determine the desired topic and then search for historical sources as supporting
data for the arguments presented in the research.
The heuristic process in this research was carried out in various places and
libraries, including the UGM Department of History Library, UGM Faculty of Arts
Library, UGM Central Library, UGM Center for Population and Policy Studies, and East
Java Provincial Library. This research also uses contemporaneous sources obtained
from the National Archives of the Republic of Indonesia such as the Algemene
Secretarie, Grote Bundel Besluit series. Several websites that provide historical sources
that can be accessed online such as the digital collection of Leiden and Delpher found
pictures or maps of the development of the sugar industry in Panaroekan during the
colonial period. In addition, the author used similar previous research as secondary
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sources such as books and scientific articles to support the author's ideas contained in
this research.
Various historical sources collected from various locations, both in the form of
archives and information collected from contemporaneous publications, were then
compared between the contents of one source and another to obtain credible and
reliable historical facts. Furthermore, the sources are classified according to the themes
that have been compiled based on the framework. In this step, source criticism and
historical explanation are carried out simultaneously in one historical writing process.
RESULTS AND DISCUSSION
Geographical Background of Panaroekan
Geographically, Panaroekan has a diverse topography, ranging from lowlands
along the coast to hills located further inland. This creates a variety of ecosystems that
support biodiversity, including tropical forests, wetlands, and rivers that flow from the
mountainous areas to the sea. The Afdeeling Panaroekan extends along the north coast
of Java with 140 km of coastline. During the colonial era, Panaroekan was also known
as Oosthoek, which means East End, because it is geographically located at the eastern
end of Java.
The total area of Panaroekan is approximately 1,638.50 km2 or 163,850 ha.
Panaroekan is a lowland with an altitude of 0-1,250 meters above sea level with a slope
between 0o-45o and has eroded dry soil reaching 26.12% or 42,804 ha. The region
consists of a varied landscape, including dense tropical rainforest, fertile agricultural
land, and rivers flowing from the surrounding mountains. These rivers not only provide
essential water for people's lives but are also the foundation for agricultural activities,
which were once the main economic sector in the region.
Socioeconomic Background in Panaroekan
Panaroekan is one of the districts that is demographically inhabited by
Madurese. The existence of the Madurese in Panaroekan is inseparably linked to the
historical fact that the Madurese migrated to Java in search of a better life. The barren
nature of Madura Island makes it extremely hard to cultivate for agriculture. In contrast
to Panaroekan, where there is plenty of fertile soil and irrigation for agricultural
activities. This encouraged Madurese migrants to settle and work in the agricultural
sector (De Jonge, 1989). So gradually the population in this region began to increase.
However, in the second half of the nineteenth century, there was a rapid increase
number of the population in Panaroekan. (Sutherland, 1979). This was driven by several
important factors such as economic development, infrastructure, and colonial policy.
In 1845, several different ethnic groups had long inhabited the Panaroekan area,
including Madurese, Javanese, Europeans, Arabs, Chinese, Moors, Malays, Bugis, and
Balinese (Tidjschirft, 1849). Although many ethnic groups inhabit this area, the largest
population is Madurese. The Javanese population was less than one-tenth that of the
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Madurese and almost all were forced to move to the south Panaroekan (Bondowoso and
Jember). Colonial literature states that no Javanese lived in Soemberwaroe in 1845 and
only five Javanese were identified as living in Panaroekan, two in Binor and three in
Kalitikoes (Tijdschrift, 1849).
Sugarcane Plantation in Panaroekan
Land clearing and sugarcane plantations began to be developed on a large scale
in Panaroekan in the early 19th century. In 1830, sugarcane began to be cultivated in
the Karesidenan Besoeki. The cultivation of sugar cane in the Karesidenan was
concentrated in several areas in Afdeeling Panaroekan. Based on several pieces of
literature, the location of sugarcane cultivation in Besoeki Karesidenan is spread across
several areas in Panaroekan. (Knight, 2014). This policy was part of the implementation
of Cultuurstelsel. The government through this policy forced local farmers to grow
sugarcane on their land and sell it at a price determined by the colonial government
(Fasseur, 1992). The plantations in Panaroekan were not only managed by the colonial
government but also by the private sector.
Sugarcane planting was carried out on a large scale using 700 bouws of rice fields
and 500 bouws of farmland. In 1831 the sugarcane crop was added to 1,200 bouws and
the following year it increased to 1,280 bouws. Sugarcane cultivation continued to be
developed so that in 1833 the area of sugarcane cultivation in Besokie was ± 3,850
bouws (Verslag, 1832). The total sugar cane planted was 3,098,304 plants. Throughout
1833, each bouws was able to produce 30 pikols of sugar. The total for that year reached
40,000 pikols (Verslag, 1832).
It was recorded that in 1840, almost 65% of the total sugarcane harvest in the
Dutch East Indies was produced from several Karesidenan in East Java, including
Besoeki Karesidenan, Pasuruan, and Surabaya (Kartodirdjo and Suryo, 1991). This
shows that sugarcane was one of the important commodities that was successfully
cultivated in the Besoeki Karesidenan. The process of sugarcane production generally
involves a lot of people and a fairly large area of rice fields. In 1845 in Panaroekan, there
were 17,672 households involved in sugarcane cultivation, using an area of 5,031
bouws. This number continued to increase in the following years. By 1850 there were
19,412 households and 6,600 bouws of rice fields used in the sugarcane production
process (Kartodirdjo et al., 1978). As a result, sugar production in Panaroekan increased
significantly, making the region one of the main sugar producers in the Dutch East Indies
(Elson, 1984).
The positive growth of sugar cane plantations prompted the colonial
government to build sugar factories. So in the 1840s sugar factories began to appear in
Panaroekan. The change in policy from the forced cultivation economic system to the
liberal economic system encouraged the commercialization of sugar factories in
Panaroekan. After the enactment of the liberal economic system, many new factories
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emerged with various technologies and production machines that were more modern
than other sugar factories in Java.
Based on some photo archives and some records of the colonial sugar industry
in Java, it shows that the sugar factories established in Panaroekan have modern types
of machinery such as centrifugal machines, steam boilers with large capacities, and so
on (Leidelmeijer, 1999). The existence of sugar factories in Panaroekan also brought
major changes in the social and economic structure of the local community. The
factories required large numbers of workers, most of whom were residents and migrant
workers.
Sugarcane Plantation in Panaroekan
The success of sugar cane plantations in Panaroekan encouraged the presence of
new sugar industries in the region. On August 04, 1846, the first sugar industry was
established in the Panaroekan afdeeling, precisely in the Olean district. This sugar
factory is known as the smallest sugar factory in Java and has a unique building form.
The Olean sugar factory is bordered to the north by Kayu Putih village, Tenggir village
to the east, Talkandang village to the south, and Alasmalang village to the west.
Suikerfabriek Olean known as the Olean sugar factory is a sugar factory under the
management of the N.V. Maatchappij tot Exploitatie der Suikerfabrieken Phaiton en
Olean company with offices in Rotterdam. While in the Dutch East Indies, this sugar
factory was under the auspices of the Anemaet & Co. Firm until 1957, when this sugar
factory was finally nationalized. The second factory is Suikerfabriek Pandji. This sugar
factory was established in 1864. Pandjie sugar factory was established by N.V. Cultuur
Maatschappij "Pandjie-Tandjongsarie". With a representative company initially Firma
Traser Eaton & Co. Soerabaja in the Dutch East Indies, before management with a
representative company Firma Tiedeman & Van Kerchem Soerabaja.
After the introduction of the liberal system in 1870, the number of sugar
factories and sugar cane plantations in Panaroekan increased. The colonial government
also continued to make many infrastructure improvements and expand the irrigation
network. This development was intended to expand plantation land for private
management. In 1871, a commission chaired by R. De Bruyn was formed to prepare a
massive irrigation development project. The commission then formed an irrigation
brigade (afdeeling irrigation) which was a special work team from Burgerlijke
Openbare Werken (BOW) that handled the construction of irrigation projects
(Pasandaran and Taylor, 1984). The development of irrigation infrastructure in
Panaroekan had a significant impact on increasing sugarcane production and
encouraged more sugar industries to emerge in the region.
In 1881, Suikerfabriek Wringin Anom was established. This sugar factory was
established by N.V. Cultuur Maatschappij "Wonolangan" with representatives from N.V
Factorij Batavia, a subsidiary of Nederlandsche Handel Maatscappij. In the following
year, Suikerfabriek Boedoean was established. Boedoean Sugar Factory was established
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by N.V. Cultuur Maatschappij Boedoean with representatives of N.V. Kooy & Co
Administratie Kantoor Soerabaja (Verslag, 1926).
The significant development of the sugar industry prompted the initiative to
build two new sugar factories in Panaroekan in 1882, namely Suikerfabriek Pokaan and
Suikerfabriek Pradjekan (Nijhoff, 1911). A.H. Benjamin was the administrator of the
Pradjekan sugar factory Regeerings Almanak, 1885). The Pradjekan sugar factory was
established in 1883 by the company N.V. Cultuur Maatschappij Pradjekan en Tangarang.
The company initially received funding from firma Anemaet & Co. Soerabaja. Later it
was changed to Ir. J.W. Birnie Soerabaja. When the sugar factory was first established,
it had an area of about 950 ha with a milling capacity of 650 tons/day. But in 1909-1957
this sugar factory was taken over by the Cultuur Handel on Industrie Bank based in
Surabaya. In 1882 the average sugar production at Boedoean Sugar Factory was 85
pikols, Wringin Anom Sugar Factory 91 pikols, Olean Sugar Factory 117 pikols, and
Pandjie Sugar Factory 108 pikols (Algemeen Verslag, 1882).
About 5 kilometers from Suikerfabriek Pandjie, a new sugar factory was
established called Suikerfabriek Pokaan more popularly known as Suikerfabriek
Tandjongsarie. This sugar factory, which is estimated to have been established in 1884-
1885, was owned by Geo Henderson c.s., which was registered as the same joint
company as Pandjie Sugar Factory. Based on colonial articles, Pokaan Sugar Factory
received a Gouvernement Besluit dated March 18, 1890 No.27 which was issued on a
five-yearly periodic basis. From this data, it can be concluded that Suikerfabriek Pokaan
is estimated to have been established in 1884-1885. The administrator of SF Pokaan
was John Couperus (Regeerings Almanak, 1885). There is not much data about this
sugar factory but in colonial literature, it is written that Suikerfabriek Pokaan was
established. Even in Dr. R. J. Broersma's notes, this sugar factory is not mentioned as
one of the sugar factories in Panaroekan (Broersma, 1913). However, the Pokaan sugar
factory was referred to as the only "vrije Suikerfabriek " in the Karesidenan Besoeki
(Tidjschrift, 1891).
The next factory to be established in this area was Suikerfabriek Asembagoes. In
1884 the Dutch government in Amsterdam sent a telegram regarding approval for the
establishment of a sugar factory in Assembagoes (Soerabaiasch Handelsblad, 1884).
Then on April 19, 1884, the Assembagoes sugar factory was officially established. In
1884 the Dutch government in Amsterdam sent a telegram regarding the approval for
the establishment of a sugar factory in Assembagoes (Soerabaiasch Handelsblad, 1884).
Then on April 19, 1884, the Assembagoes sugar factory officially received an operating
permit from the Dutch East Indies colonial government (Regeerings Almanak, 1885).
The construction of this factory cost almost half a million guilders (Regeerings Almanak,
1885) In 1889 this sugar factory was leased to a third party, and not long after the
Assembagoes sugar factory generated a net profit from the harvest of 65,000 picols or
around ± 4 tons (Nieuwe Haarlemsche Courant, 1889). The Assembagoes sugar factory
was in debt and then merged into N V. Suikercultuur Maatschappij (Assembagoes en
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Sempalwadak) with the representative of the company N.V Kooy & Co Administratie
kantoor Soerabaja in the Dutch East Indies (Verslag, 1926). The Administrator of the
Assembagoes Sugar Factory was C.H.R. Falkman (Regeerings Almanak, 1885).
The last sugar factory was Suikerfabriek De Maas. This sugar factory is located
in the village of Kalimas in Besuki. De Maas is the second sugar factory established in
Panaroekan, precisely in 1896 by N.V. Cultuur Maatschappij "de Maas" which is located
in Rotterdam. This factory is registered under the ownership of A. Van Hoboken & Co.
Meanwhile, in the Dutch East Indies, the management was represented by Firma
Anemaet & Co Soerabaja (Verslag, 1993-1935). The construction of the De Maas sugar
factory cost f 2,850 (Colonial Bussines, 307941). However, this sugar factory slumped
due to the economic depression that hit the world. So this individual company had to
merge into the Naamlooze Vennotschaap (NV) holding. This merger was generally
carried out by establishing cooperation between the company and a bank to obtain
capital injections.
De Maas Sugar Factory finally received capital assistance from De Javasche Bank
(Kuntohartono, 1987). In the 1930s, an economic crisis occurred known as the Great
Depression. This event has shaken sugar factories throughout the island of Java,
resulting in a reduction in production and even temporary factory closures. If in 1929
there were a total of 180 sugar factories operating in Java, then in 1935 only 45 sugar
factories were still operating (Verslag, 1933-1935). However, along with the
improvement in global economic conditions in 1940, the number of factories operating
increased to 85 factories (Booth, 2000: 205). Of course, this decline affected the sugar
industry in Panaroekan. It was recorded that eight of the twelve sugar factories in the
Besoeki Residency were operating in Panaroekan before the malaise crisis (Archief voor
de Javasuikerindustrie, 1896). However, after the economic crisis, only 4 sugar factories
in Panaroekan were still able to survive, including Suikerfabriek Pandjie, Olean,
Pradjekan, and de Maas (Nurcahyo, 1999).
CONCLUSION
The presence of the colonial sugar industry in Panaroekan is closely related to
the success of the sugar plantations that were established during the cultivation period.
This region was chosen as the development area for sugarcane plantations and the
sugar industry because in general it has fertile soil conditions and is suitable for the
development of the sector. In addition to the favorable geographical conditions, the easy
access to the port to support export activities is a key factor that supports the
sustainability of this industry. Although the sugar industry in Panaroekan has always
shown positive development, the malaise crisis has shaken the industry. This adversely
affected the sugar industry in Panaroekan and resulted in several sugar factories
temporarily closing.
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Tijdschrift voor Nederland's Indië jrg 11, 2e deel, No.8. (1849). Batavia: Lands-Drukkerij.
Tijdschrift voor Neerland's Indië jrg 19, 2e deel volgno 3. (1890). Lands-Drukkerij: Batavia.
Tijdschrift voor Neerland's Indië jrg 20, 1e deel volgno 7. (1891). Lands-Drukkerij: Batavia.
Verslag van het algemeen sydicaat van suikerfabrikanten in Nederlansch Indie over het
39e, 403 en 41e vereenigingsjaar, 1933-1935,
Verslag van het algemeen syndicaat van Suikerfabriekanten in Ned. Indie over het 32e
jaar, 1926.
Nurul Maghfiroh, Oosthoek Sugar Eden: The colonial sugar industry... 32
