Thomas Stamford Raffles, a key figure in British colonial history, was appointed Lieutenant Governor of the Dutch East Indies (now Indonesia) in 1811. During his brief tenure, Raffles introduced several reforms, one of the most significant being the Land Rent System, a tax policy that reshaped agrarian relations in Java.
As a proponent of liberalism, Raffles sought changes across various sectors. One of his major administrative policies was the implementation of the Land Rent System (landelijk stelsel), or land lease taxation.
This policy reflected Raffles' view of land as a means of production. According to him, the government was the sole legitimate owner of the land. Therefore, it was only natural for the Javanese people to act as tenants, paying rent in the form of land tax for the land they cultivated.
“The Land Rent system was implemented in Java but lasted only five years. It was inspired by the British model in India, where the system was deemed successful,” wrote Ahmad Nashih Lutfi in Melacak Pemikiran Agraria: Sumbangsih Mazhab Dari Bogor.
Raffles’ Efforts to Dominate Javanese Kingdoms
To gain control over land, Raffles made efforts to subdue the kingdoms of Java. Some surrendered through diplomatic means, but others required military intervention.
Hariyono, in Thomas Stamford Raffles Seorang Universalis atau Imprelialis?, noted that in 1813, the Sultan of Banten voluntarily relinquished his administrative power to the British government in exchange for a pension. Two years later, Cirebon came under British control through a negotiated agreement.
Raffles then attempted to negotiate with the Sultanate of Yogyakarta, but Sultan Hamengkubuwono II refused. As a result, Raffles deployed military forces led by Major General Gillespie, supported by the Mangkunegaran Legion, in 1811.
The British forces and Mangkunegaran troops succeeded in occupying the Yogyakarta Palace and looted its treasures. Sultan Hamengkubuwono II was then captured and taken to Batavia, before being exiled to Penang.
“After that, British imperial control became smoother, thanks to the cooperative attitude of the Sultan’s relatives who were willing to collaborate with the British,” wrote Djoko Marihandono in Sultan Hamengkubuwono II: Pembela Tradisi Dan Kekuasaan Jawa.
Land Rent Provisions under Raffles’ Rule
The land lease system implemented during the administration of Lieutenant Governor Raffles included the following provisions:
- Farmers were required to lease the land, even if they were the rightful owners.
- The rental fee depended on the condition and quality of the land.
- Rent was to be paid in cash.
- Landless residents were subjected to a poll tax.
- Taxes on rice fields were set at different rates: 50% for first-class fields, 40% for second-class, and 33% for third-class.
- For dry fields (tegalan), the rates were 40% for first-class, 33% for second-class, and 25% for third-class.
This tax burden was undeniably heavy on the people. Although payment was expected in cash, it could be made in kind—such as rice—if absolutely necessary.
Taxes paid in cash were to be submitted to the village head, who would then deposit the funds at the resident’s office. Taxes paid in the form of rice were delivered directly to the resident’s office by the taxpayer, at their own expense. This method was intended to reduce corruption by local leaders who were known to siphon off a portion of the harvested produce.
“These regulations were very easy for the British government to declare, but extremely difficult for the native population to follow, as they were unfamiliar with such systems,” explained Ahmad.
The Failure of the Land Rent System
The Land Rent System was expected to help develop the colonial economy in the Dutch East Indies. However, its implementation faced many obstacles, leading to minimal benefits for the British administration, while the local people continued to suffer.
Several factors contributed to the system’s failure:
- Deep-rooted cultural practices among farmers that were difficult to change
- Weak government oversight
- Local officials, such as village heads and regents, held more influence than European assistant residents
- Raffles struggled to separate himself from the mentality of a colonizer
- Forced labor, slavery, and monopolies were still in place
Marwati Djoened Poesponegoro, in Sejarah Nasional Indonesia Jilid IV Kemunculan Penjajahan di Indonesia, noted that Raffles' short time in power (1811–1816) hindered effective implementation of his policies. This was compounded by a shortage of staff and limited financial resources.
“The implementation of the Land Rent system can be considered a failure. Despite adequate preparations and tax principles set out in the 1814 tax instructions, it ultimately failed to be enforced as originally intended,” she wrote.
