The Dynamics of Trade in the Old City Semarang
- Museum Kota Lama
- Oct 13, 2023
- 2 min read
" Although it did not yet have a major influence, Semarang's industry was already quite advanced with sugar, salt, and fishery industries."
When Semarang was still under the rule of the Demak Kingdom and Islamic Mataram, it was still a small harbour. Although it did not yet have a major influence, Semarang's industry was already quite advanced with sugar, salt, and fishery industries. In addition, there were also coconut plantations, teak trees, tamarind, indigo, rice, beans, and onions. Despite not yet being a major port, Semarang had the advantage of a road that connected to the capital of the Mataram Kingdom inland.
After the VOC made Semarang as headquarters for the Noord-Oost Java region, it grew into the main gateway to central Java and bustling with trade activities. Warehouses were filled with piles of rice, timber, and kapok (cotton) gathered from the hinterland for onward sale. Semarang gradually became a city that surpassed earlier port cities such as Demak and Jepara.
The number of private traders began to increase when the colonial government gradually opened the "tap" for private trade in 1870. Trade activities increased further with the opening of the Suez Canal in 1869, which significantly shortened the connection between the Netherlands and the Dutch East Indies. The port of Semarang was not only a place to ship crop products such as sugar, tobacco, and indigo but also a place to receive supplies of machinery and equipment needed for industrial activities in the interior.
In addition to goods trading companies, financial and banking companies also emerged in Semarang, targeting investors who needed loans to open and expand plantations. Some of these financial companies became plantation syndicates such as the Koloniale Bank and Cultuur Maatschappij der Vorstenlanden. The rapid circulation in Semarang eventually led many people to waste their money. This was the background and reason for the establishment of Semarangsche Spaarbank, which was established in 1853 to encourage people, especially those with low income to save their money in the bank.
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