“The Dutch colonial system had a damaging impact on the Indonesian economy.” To what extent do you agree with this statement? 

Candidates are required to consider the merits or otherwise of the argument that the Dutch colonial system had a damaging impact on the Indonesian economy. In support of the statement, candidates may consider the imposition of monopolies on the most valuable spices, which resulted in the flight of capital to the Netherlands. They may also consider the impact of burdensome taxes—such as the land tax, on top of continuing tribute to indigenous rulers—and the Coolie Ordinance. Beneficial effects, such as increased demand for Indonesian products, and, in the 19th century, the abolition of the Cultivation System and the introduction of the Agrarian Law, which promoted landholding by Indonesians, will also be addressed. There were significant improvements to infrastructure and the labour market.