Accounting Practices in the Golden Era of Sultan Babullah: the Sultanate of Ternate (1570-1583)

Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020, pp 151-166

Accounting Practices in the Golden Era of Sultan Babullah: The Sultanate of Ternate (1570-1583)

Nawira Amalia Assagaf1*, Eko Ganis Sukoharsono2, Zaki Baridwan3 1,2,3Department of Accounting, University of Brawijaya, Indonesia *Corresponding author: [email protected] https://dx.doi.org/10.24815/jdab.v7i2.16761

ARTICLE INFORMATION ABSTRA CT Article history: This study aims to explore the accounting practices and their development during the Received date: 19 May 2020 Ternate Sultanate of Sultan Babullah era (1570-1583). This period is a golden era of Received in revised form: 20 July 2020 the sultanate as it the Sultan Babullah successfully expanded its power from the north Accepted: 20 July 2020 of Mindano to the south of Bima and from west of Makassar to the east of Banda. Available online: 25 September 2020 Using document analysis and interviews with the sultanate descent family members and historians as the primary source of data, this study employed ethno archaeological approach. The results revealed that accounting was demonstrated in various types of activities included economic transactions in traditional markets, the use of money for covering social needs, and taxation mechanisms. The Sultanate also developed a well-arranged of taxation system where all types of taxation could be paid not only with money, but also by providing manpower to the Kadaton (or palace), goods, and kora-kora (or royal fleet). Keywords: Accounting history, ethnoarchaeology, Sultan Babullah, Ternate, suba jou. Praktik Akuntansi Era Keemasan Sultan Babullah: Kesultanan Ternate (1570-1583)

Citation: ABSTRAK Assagaf, N. A., Sukoharso, E. G., & Baridwan, Penelitian ini bertujuan untuk mengungkapkan keberadaan praktik akuntansi di Z (2020). Accounting practices in the golden Kesultanan Ternate dan perkembangannya pada era pemerintahan Sultan Babullah era of Sultan Babullah: The Sultanate of (1570-1583) dengan menggunakan pendekatan etnoarkeologi. Periode ini Ternate (1570-1583). Jurnal Dinamika Akuntansi dan Bisnis, 7(2), 151-166. merupakan periode keemasan Kesultanan Ternate dengan kekuasaan yang membentang dari Mindanao di utara hingga ke Bima di selatan, dan dari Makassar di barat hingga ke Banda di timur. Metode pengumpulan data dilakukan dengan

teknik analisis dokumen bersejarah dan wawancara dengan sejarawan dan keluarga Kesultanan Ternate. Hasil penelitian menemukan bahwa akuntansi pasa masa Kata Kunci: tersebut ditemukan dalam berbagai jenis kegiatan termasuk transaksi ekonomi di Sejarah akuntansi, etnoarkeologi, Sultan Babullah, Ternate, suba juo pasar tradisional, penggunaan uang dalam banyak kebutuhan sosial, dan mekanisme perpajakan. Selain itu, Kesultanan juga mengembangkan sistem perpajakan yang tertata dengan baik dimana tidak semua jenis pajak dibayarkan dengan uang, tetapi juga dapat dibayar dengan menyediakan sumber daya manusia untuk Kadaton (heerrendiensten), dalam bentuk natura, atau dalam bentuk armada kerajaan (kora- kora).

1. Introduction merely seen as a technical activity illustration The history of accounting in Indonesia has which independent from the environmental become an emerging research interest among context for instance politics, social, economy, or Indonesian accounting scholars. Accounting was culture where it operates. The recent development

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152 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020 pp 151-166 of accounting literature introduces a new This study explores accounting practice in perspective of accounting where accounting is the Ternate Sultanate which involves the use of considered not as a simple calculation anymore, money as a medium trade and accountability of rather as a system within the evolution the Ternate Sultanate and its taxation system chronology (Sukoharsono, 1995). Moreover, implementation based on spiritual value. The Miller & Napier (1993) offer a new perspective period of Sultan Babullah (1570-1583) was by considering external factors and emphasizing chosen as the study context because the Sultanate the essence of accounting changes in responding reached its golden era under his leadership. The to the internal factors. Sultan Babullah also able to repel the invaders Sukoharsono (1993) states that the existence and it brought him to reach the top era by taking of the accounting system in Indonesia history can control of 100 inhabited islands (Forest, 1969). be seen from the data proof of each phenomenon, The Sultanate of Ternate or also known as such as in inscription of taxes transaction data. Gapi Kingdom is one of four Islamic kingdoms in According to Suarbhawa (2009) inscription is one Maluku and it is acknowledged as the oldest of the pieces of evidence that has an excellent Islamic kingdom in the Indonesia archipelago. quality in the reconstruction of ancient history. It The Ternate Sultanate had an important role in provides a comprehensive picture of various the east area of the archipelago between the 13 to situations and events that happened when the 17 centuries. Previously, there were only four inscription was made. Sukoharsono (1995) argues villages in Maluku; where each of them was that accounting exists in a business society that is headed by a leader called Momole. The four affected by the environment culture where villages, later on pioneered relationships with the accounting develops. traders coming from different regions and Studies on accounting historical development continents seeking spices (Amal, 2010). The have been carried out by some researchers. For Ternate residents were more heterogeneous example, Sukoharsono & Qudsi (2008) explored because of the Arabian, Javanese, Malay, and accounting development in the golden era of Chinese traders who decided to stayed and live in Singosari Kingdom, while Budiasih & Ternate. Because of the crowded trade activities Sukoharsono (2012) investigated the accounting and the threat of rubber, the Ternate residents practices in the kingdom of Udayana in Bali. The conducted a meeting to decide the leader or king prior studies were mostly undertaken in the west on Momole authority and finally to build a and middle area of Indonesia region, while stronger organization to avoid discord studies of accounting history in the east side of (Rusdiyanto, 2018). Indonesia is still very scanty. Furthermore, In 1257, Sampalu leader named Momole Gaffikin (2005) studied the history of Ciko was chosen as the Kolano (or king) with the methodological changes in the development of title ‘Baab’. He was the first king who obtained accounting research. Besides, Moore (2005) the title of Baab Mashur Malamo (1257-1272) conducted an accounting history research that and became the first king for 20 years. At that focuses on historical inquiry as a starting point time, the kingdom center or capital city was in for the development of the accounting profession. Sampala, located in the west sea of Ternate Funnel (2005) also researched on the history of Island. Further, this capital city is acknowledged accounting developments with one of the focuses as ‘Gam Lamo’ (large village) (Daud, 2015). being related to public sector accounting in the The area around the kingdom was known as UK. spice producers. Hence, a lot of foreign traders came in purpose of trading. The Sultanate of 153 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020, pp 151-166

Ternate was established and finally had a better Ternate Sultanate. It has stronger cultural and kingdom system including the trading system. spiritual beliefs, for example, the concept of Suba Various types of Ternate spices attracted traders Jou during the Sultan Babullah era (1570 to from all over the world and later on, the 1583). European traders came and started political chaos Through the study of inscription, historical in the region (Maluku) (Andaya, 1993). writing, object, building, or cultural history, the Ternate was the main destination target of accounting practice or financial arrangement the local and foreign traders to obtain spices during the era were revealed. Further, the (Sapari et al., 2011). Automatically, it stimulates dimensions of social value, economy, politics, various culture and religion interactions and and spirituality also elaborated to understand the development in the area. However, the local existed accounting practices. The primary focus values believed by the local society including of this study is how was the development of Ternate still existed. The belief consisted of accounting practice based on the Suba Jou values related to god, human relation, and human concept which plays a role as a life guideline and relation with nature. These cultural values were a religious philosophy of the Sultan Babullah era believed as the Ternate society guideline which is (1570-1583)? multiethnic and multicultural. The findings of this study contribute to the One of the values is ‘Suba Jou’ (or accounting literature on the role of the local worshipping god) concept. Sjah (2006) explains culture and spiritual within accounting practices that the decision-maker and the kingdom decision and mechanism. The findings enrich the always based on the Suba Jou concept, namely accounting theory especially on the accounting ‘Adat Ma Toti Agama, Agama Ma Toto history and the intertwining of archeology and Kitabullah, Matoto Rasululla Se Jou Allah Ta’ accounting. The historical accounting practices ala (or the culture is based on the religion, the not only play a role in explaining how accounting religion is based on the Quran and Hadits, Quran was practiced, but also for the present and current and Hadist are based on the prophet Muhammad accounting theory and practices particularly in and Allah). It means that the entire society’s decision-making process. activities should be consistent with the culture In addition, the findings also provide a because it was based on the religion which practical contribution for accounting scholars coming from god roles in Quran as the guideline who are interested in historical accounting in including the financial side including the Indonesia by taking into account the function and accounting and taxation system. role of accounting in society. In doing so, the This study aims to explore accounting scholars need to explore the local cultural values practice and its development in Ternate Sultanate and spirituality which has affected the accounting especially in the Sultan Babullah era (1570- practices. In terms of policy formulation, this 1583). Using the ethno-archaeological approach, study can be used as a reference for accounting this study was motivated by previous research on standard setters in designing more appropriate accounting in Indonesia history (for instance, standards that consider society values, and norms. Sukoharsono & Qudsi (2008) on the Singosari The next section discusses the theory of historical Kingdom; Budiasih & Sukoharsono (2012) on the cycles, historical accounting research, accounting King of Udayana in Bali). Unlike prior studies, practices and their development in the social the research object of this study is the history of environment and historical perspective. the kingdom situated on the east side of Section III describes research methods, Indonesia, namely the Islamic kingdom of namely the ethnoarchaeology approach as

154 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020 pp 151-166 analytical tools, research locations, methods and Accounting which is explored in this study types of data, research framework, and data not only involves numerical calculation, but it is analysis. Section IV presents a discussion of the more on cultural and spiritual dimensions in every existence of the Sultanate of Ternate, the reign of aspect of human life especially in the sultanate Babullah (1570-1583), money as a transaction environment. In science, history is important event tool, and the trading system at that time. Lastly, that happened in the past and may give influence the final section provides the conclusions, for future events. The accounting events are limitations of the study, and research refereed to how was the accounting recording implications. process taken place in the sultanate system, how was reporting defined, relevant policies 2. Literature review and hypothesis formulated. These events are important in development understanding accounting development history Accounting history research (Mulya et al., 2014). Practically, accounting is related to activities that involved two or more individuals in an The existence of accounting practices accounting dynamic interaction context with the The historians believe that the record system environment; viewed from social, cultural, was started around 3000 BC. At that time, politics, or economic aspects of a society bookkeeping was in a form of writing, the (Budiasih & Sukoharsono, 2012). The social introduction of Arabic number and decimal, environment that includes culture is one of factors algebra, and the use of standardized barter media which supports the success of accounting practice (Putri, 2010). Further, the stone bark and palm implementation. According to Sukoharsono leaves were used as record media. To date, the (2005), accounting events in the past is referred to oldest record proof which founded and keeps well accounting history, while today’s event is where is coming from Babylon in 3600 BC. accounting exists and future accounting event is The accounting record system was called as accounting prediction. History is implemented by Muslim society before the considered as a building foundation; the higher Arabic number was introduced. The record was level of historical understanding, the stronger of required as the Muslim people need to calculate its building (Budiasih & Sukoharsono, 2012). Zakat, a religion based retribution as the Historical accounting practices were not only responsibility of every Muslim (Zaid, 2004). The played an important role in theory development or accounting practice served as a reporting tool for practices for decision making consideration in the calculating Zakat, one of the Islamic pillars. past but also plays a crucial role in today’s and Furthermore, Croix (1956) shows the evidence future’s condition (Alexander, 2002). Likewise, that accounting practices founded in the classical accounting history is the basis of the existence of Greece era. However, the implementation of the accounting in the future. double bookkeeping was not well established as Historical evidence can be reviewed through the people did not familiar with the Hindu-Arabic historical data both in written form, in the form of and 0 numeral system. Hence, the accounting inscriptions, and historical studies or not in written record did not have any meaning. The Hindu- form, but in relics form such as ancient buildings, Arabic numeral system was introduced to the stone sculptures, Chinese ceramics, metal coins, west European by the Muslim people in Spain. and papers, as well as various other artifacts The work of Al-Khawarizma, the Persian related to accounting practices. mathematician, who documented the arrangement of the accounting system in the old Islamic 155 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020, pp 151-166 kingdom to fulfill the zakat obligation of every practices in a society. Accounting play an Muslim (Zaid, 2004). important role in social activities as it has In 1494, a mathematician named Luca implication to the creation of patterns in a society. Pacioli published a book with the title ‘Suma de Arithmatica, Geometrica, Proportioni et Accounting practice in the perspective of Proportionalita’. The book introduced history (Kingdom) bookkeeping mechanism based on double Accounting practice has emerged since the bookkeeping system. The double bookkeeping Islamic golden age, for example during the system as found in the sub title ‘Tratactus de Abbasiyah (or Abbasid) dynasty. The Abbasid Computies et Screptoria’. Later on, it was dynasty is the most successful Islamic kingdom expanded by Pagaini, the father of modern especially in terms of Islamic civilization. The accounting, in a work entitled ‘La Abbasid dynasty authority had begun from 750 Scoula Perfecta de Mercanti’ (Alexander, 2002). C/132 H to 1258 C/656 H (Aminullah, 2011). In According to literature, accounting was used this period, Islamic civilization was in its golden firstly in Indonesia by the Netherlands era where the Muslim world led the development colonialism around 1642 or in 17 century, but the of many fields, for example, economy. detailed convincing proof was found in the Consequently, the accounting practice in the adopted bookkeeping system of the Amphioen dynasty was advanced. Society, started since 1747 in Jakarta. After the Accounting system in the Abbasid dynasty independence of Indonesia in 1945, the era known as Merdiban system. This record government still used the old bookkeeping system was divided into two kinds; one book for system which was introduced by the Netherlands fiscal recording and the other one for military until 1960. Later on, the accounting system was recording. The Merdiban system brought a big changed from the Netherlands continental system influence on the economy and accounting to the United Stated accounting system called development. Hence, the dynasty economy Anglo Saxon (Budiasih & Sukoharsono, 2012). arrangement can be properly controlled and managed. It applied sharia value and principles in Accounting practice in a social environment every activity (Thahirah, 2016). Thus, this system Many disciplines have developed significantly confirms that the development of science and for the last decades, for instance, social science, culture has influenced accounting practices. natural science, art science, and literature. Moreover, each era or society defines definition Accounting is coming from social science or of accounting differently that aligns with society specifically economy commonly called as a development. This development will business language. Accounting is a discipline that continuously occur based on the dynamics of the studies information needed by business era or society (Mulya et al., 2014). community to attain an efficient and effective Similarly, the accounting development and financial evaluation activity. practices in kingdom history also cannot be Accounting should be viewed as a dynamic separated from the knowledge development and phenomenon that interacts with environment demand of the environment. Accounting which is where it operates. Hence, when the environment emerged from science and thinking produces act changes, accounting is able to adapt quickly and of accountability, for instance accounting for accordingly. According to Robson (1991), the assets, taxation, etc. Besides, accounting is used accounting dynamics may maintain its integrity, as media of responsibility of economical legitimacy, and strength in fixing various social

156 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020 pp 151-166 activities in society organization, government, 3. Research method including the kingdom. The ethnoarchaeology This study is a qualitative based study that The influence of religion on accounting employs ethnoarchaeology approach to address development the research question. This approach was used to Accounting not only produces numbers but it gain an understanding of accounting practice also able to reflect the society’s social life where construction in the past (Budiasih & it is used. Mathews & Perera (1996) describe that Sukoharsono, 2012). To obtain more detailed accounting as the sword with two blades. information about accounting practice in the Accounting may be constructed through its Sultan Babullah era (1570-1583), the method environment (socially constructed) and may be which able to reveal the answer of research constructed from its environment (socially problem deeply is required. Ethnoarchaeology is constructing). Accounting is not value-free a discipline which learn about traditional society science and practice, but it is a discipline and group life by using ethnography data to solve the practice that has a requirement to be valued. It archeology problems (David, 2001). means that accounting was not constructed by Ethnoarchaeology is a combination of environmental influence only, but it also can ethnography and archeology. Ethnography affect the environment; in this case, the behavior means, the writing in a form of a report which is of accounting information users. fulfilled by other cultures, and it is written by the According to Mangunwijaya (1985), anthropologist based on the field record. accounting exists because of the human thoughts Recently, ethnography has been transformed as that are presented in a language. The language the fundamental tool to learn deeper aspects of itself is the strongest symbol that produces society; not only in limited and isolation scope rational and irrational civilization. The rational but also in a wider scope and multicultural factor is an inanimate object that can be moved situation. On another side, archeology is a by human thought. Beside the rational factor, science that learns about historical evidence in there is an irrational factor which also plays a the past through systematical analysis. crucial role. Religious, spiritual aspiration and This study utilized a historical approach culture are the support system of irrational factors obtained by collecting the past inscriptions and (Budiasih & Sukoharsono, 2012). manuscript of the Ternate Sultanate especially Accounting intends to release human from information related to the trade and accounting the transitory and capitalistic world, taboo in practice in that era. Because of this study applied human life orientation, and make human to turn ethnoarchaeological approach, unwritten away from god’s power. Accounting is a stimulus historical of relic ancient objects such as Kadaton that aims to bring the direct and human path to or palace, statues or the object which became the the submission to God (Triyuwono, 2009). It has kingdom symbol, and other objects related to the been widely accepted that accounting definition accounting practice construction in that era were is not as narrow as thought by ordinary people needed to support the data. Researchers also who interpreted accounting as solely technical conducted intensive interviews with informants number management activity. In fact, accounting who were considered to be able to provide has big spiritual strength in wide field including information relevant to research questions, for all human aspects in their environment. example, Ofa (the prince), kingdom young Mufti, historians, and epigraphs.

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Data collection method Sukoharsono, 2012). A qualitative analysis To know the accounting practice technique was applied to analyze the research construction that happened in the Sultan Babullah data with the ethnoarchaeology as the primary golden era, the researcher visited historical sites, data collection method. The next was interpreting namely the Ternate Sultanate Kadaton (or the meaning of historical facts in written or palace), the European fortresses, and the harbor unwritten form. The interpretation results which was a trade center, and other historical describe the field finding synthesis, theory places. Additionally, the researcher conducted perspective, and other value frameworks. interviews with several interviewees who have detailed information related to the Ternate 4. Results and discussion Sultanate during the Sultan Babullah era (1570- Accounting practices and the Sultan Babullah 1583). Thus, the researchers can feel, describe, Baab Ullah or Babullah Datu Syah was born and imagine what happened in that era. The in Ternate, 10 of February 1528. Baab, his popular interview was conducted in January 2020 using is nickname, is the eldest son of Sultan Khairun and a semi-structured interview method. The Boki Tanjung. Baab was appointed as the sultan to interviews were tape-recorded with an average substitute the late Sultan Khairun. He was the 24th duration of 60 minutes. The interviewees are the Ternate’s sultan who led from 1570 to 1583 Ofa (prince), the Sultanate young Mufti, Suseba (Amal, 2009). Francis Drake who met Babullah in (traditional apparatus), historian, archeologist, his visit in Ternate on 5 to 9 of November 1579 and cultural observer. said that “Babullah was the Lord of a hundred Documentation for examples, pictures taken islands” (Forest, 1969). during the research process can also illustrate the Baab was the greatest Sultan in the whole truth of the existence of the Ternate Sultanate and Ternate and Maluku history. He was successful in its contents. Beside visiting Kadaton of Ternate bringing the country and society to the top of sultanate, the information sources also taken from authority legitimacy and defeating the Portuguese. the government documents, tabloid (Ternate Hence, The Ternate Sultanate could reach the Sultanate publications), book, Tulilamo daily golden era (Amal, 2009). The nickname of record (clerk) in Hiyakat Naidah which was Babullah is ‘the king of 72 islands’ which all the translated by Crab (1862), trip report of Pires islands were inhibited (Ruray, 2010). In the (1515) and Galvao (1544), officials government Babullah era, Ternate became the strongest documents in sultan Babullah era. The important kingdom and had a big influence on the politics or archives consisted of agreement and Sultan military in the east of Indonesia at that time. appointment were collected from the national This study found that the accounting library, national archives of Republic of development during the Sultan Babullah (1570- Indonesia, and the Ternate archive office. The 1583) era was related to the use of money as a archeology data needed for this study were medium of exchange and transactions, taxation in collected through historical objects terms of types and mechanisms of imposition, and documentation, non-participation observation, accountability of assets. The accounting treatment and interviews. is inseparable from the religious philosophical concept of Suba Jou (Jou se Ngofangare) which The data analysis emphasizes the relationship in terms of rights and The data analysis consisted of grouping and obligations between the sultan and his people. arranging collected data to ensure a deeper data In line with research Sukoharsono & Qudsi interpretation is achieved (Budiasih & (2008) that raised the topic of accounting in the

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Singosari era using the Foucauldian perspective. behind these differences are time, demographic The findings of the study suggest that in the era of factors, culture and culture. the Singosari Kingdom claimed to have known money as the ancient Javanese era used the gold Money as the exchange medium and and silver medium of trade. transaction tool In nowadays modern society, money is Besides, information related to taxes on the viewed as an integral part of daily life, especially Sima inscription which was originally a tax in economic activities. According to Mankiw submission to the kingdom in administrative, (2006), money has three functions: as a medium of socio-economic activities, and the needs of the exchange, store of value, and unit of account. Sima community. Money had long historical development. The The difference of findings in the era of the barter system became inefficient as it was more Singosari Kingdom proposed by Sukoharsono & complex and inappropriate to be implemented in Qudsi (2008) and the era of Sultan Babullah in this this modern era. The efficiency of using money to study is considered normal. Some of the factors replace barter transaction has led to a rapid trade development.

Figure 1. Ternate Trade Line Map Source: Ternate Archive Office (n.d)

In Maluku, money was used as a transaction developed rapidly. According to the Leirissa medium for buying and selling along with the (1999), international trade and the national trade barter system in transaction. The barter system is especially in the east side of Indonesia, namely the considered more complex because of difficulty in shipping line in Maluku including Ternate, was determining the value of the exchanged goods. very attractive for traders in the XIV century. The Besides, it was also a challenge to find people who line was stretched from Malaka strait to the north want to do the barter transaction (Sahar & Java coast to Banda and the east side of Indonesia Setiartiti, 2016). especially Maluku. Money transaction was not separated from Galvao (1544) points out that ‘ships or junks economic development through the trade which came here by the Borneo route. They were the first 159 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020, pp 151-166 to be seen in these islands, and they always came taxation accountability during the era of Sultan from the direction’. According to Galvao, Chinese Babullah was considered as an important traders were the first people who came and did the component because the Ternate Sultanate reached transaction in Maluku. The Chinese came in its golden era as the largest Islamic Kingdom in purpose to buy spices in large numbers by using the east. The taxation accountability practice in ‘Fang’, the currency in T’ang dynasty period Sultan Babullah era could be reflected by the tax (Ahmad, 2016). The money was in a form of a collection system based on the provision and small round with the square hole in the middle; so mechanism type of the sultanate regulation. This that it can be put together and tided up into one current study explored taxation accountability in thousand (Reid, 2011). the Sultan Babullah era which related to the However, when the relationship with China cultural social aspect by analyzing the relationship was declining in 1500 the Fang money became between the Sultan and his society. rarely used in the market. Apparently, the Chinese The income of Ternate Sultanate generally money (Fang) had been imitated (fake money) in originated from tax collection using several tax Java and other places to maintain its supply in the schemes and the policies (ngase or tax system). market. Pigafetta (1524:60) believes that the Society had high acceptance of the tax as it served Chinese money used in Brunei was produced by as a way to thank the Sultan. In each sultanate surrounded Islamic communities. In 1537, the authority area (district), there was a deputy sultan Portuguese offered the people in Maluku (Oetusang) and regent (Sangaji). Both the deputy Portuguese currency by perforating the currency to sultan and regent were appointed/ existed to be easily being tiled and accepted by society maintain the good relationship between each (Galvao, 1544:270-273). district and the palace (kadaton). Such a The decreasing of local substance currency, relationship was reflected in a taxation system Galvao concluded that the leader had a lower which coordinated the obligation of the people’s to income. Therefore, he requested to widen the sea the Sultan (Leirissa, 1996). trade relations and required the use of Portuguese The taxation accountability mechanism was money in all transactions to increase the trade vertical (upward) accountability. The Sultan gave number (Jacobs, 1971:323-325). Thus, the the mandate to each Sangaji (or regent) to be economy politics was strengthened by forcing the responsible for tax collection on their district. use of Portuguese currency by Galvao (Andaya, However, the people must pay the tax to the 1993:124). For the first time, the Portuguese Sangaji as the mediator based on the Sultanate currency was introduced in Maluku, in the 15th regulation. Sangaji as the society tax mediator had century. At that time, Cruzado was the most to report to the Sultan, while the Sultan had a popular Portuguese currency. Pires describes that responsibility to give ensure people welfare one bahar mace (similar with 7 nutmeg seeds or through a good budget plan of the tax collected 261 Kg) was equal to three to three half of from his people. Cruzado (Razif, 2017:76). The taxation payment was the largest income source of the Sultanate. Therefore it should be Taxation in Ternate Sultanate: the mechanism utilized effectively to attain the outcome related to and accountability the infrastructure development needed by the Historical development accounting practice people and the Sultanate. The rate of tax payment has a close relation to the social life aspect and was high as the people fully believed in the Sultan. culture where accounting developed and operated According to Leirissa (1996:173), the tax (Sukoharsono & Qudsi, 2008). In this study, the required by the Ternate Sultanate consisted of

160 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020 pp 151-166 three components: providing the manpower to considered the authority as a single, united, and fulfill the need of the kadaton (heerrendiensten), absolute. It means that the authority is not the goods, and kora-kora (the kingdom fleet). Further, place for competition, divided, and partitioned the tax in form of manpower was divided into: (Hasyim, 2018. For this reason, the Ternate Sultan human resource for the kadaton family (slave), the had a big responsibility to do the mission in workforce of forest and clove business, the purpose to strengthen the sultanate. They also kingdom fleet or hongi. Additionally, the ngase believed that the success of a sultan is attained if (or tax) system was collected from the forest and the sultan can fulfill all the kingdom missions. sea result. The Ternate sultanate called the land with Besides tax, the other income source was aha. Aha is the basic word from kaha which rewards or war booty from the conquered means land. In Ternate language, aha means that kingdoms. The rewards considered as the tribute the right of the land. According to the Ternate and the acknowledgment proof of the regions were sultanate traditional regulation, there were 5 types controlled by the Ternate Sultanate authority. The of land right: Firstly, Aha Kolano (the sultan’s tax was not only taken from the trader (the trading land); a land for the sultan and there was no tax tax), but also the sale income tax, and the port required for this land. Secondly, Raki Kolano; a charges/ tax from the anchored ships. The land which commonly use for gardening and it Syahbandar (or Chief of port) had the planted with sago and bamboo. This land was the responsibility to collect tax and maintain the public area for the society, not individual record of the depart and the arrival of ships in the ownership. port (Reid, 1999). Thirdly, Aha Soa, a land given by the sultan to the soa (clan) and it cannot be sold or bought. The Accountability of assets in the Ternate Fourthly, Aha Cucatu, a land given by the Sultan Sultanate for the society to be maintained individually, Islam teaches its followers to use their assets while the result of it (aha cucatu) would pay the for kindness and be responsible. Further, the tax (Asyhari, 2008). Fifthly, Gura gam, a land prophet of Muhammad emphasized that Allah is given by the Sultan to villages and it functioned as the real owner of the entire assets existed in the a garden which the result could be useful for the world mandated them to humans as the users society. (agent of trust) (Antonio, M, 2010). If we analyzed The sultanate also had assets in a form of a the asset values in the Sultanate, we would found palace as the reward of the highest traditional that the Sultan as the leader manage the assets in culture position authority. The palace which was purpose to reach social welfare and able to prevent known as kadaton used as the sultan life place; the use of assets for individual purposes only with the sultan title was ‘Sirajul gulub’ or heart (whether by the government officials of the Sultan light. The title was the truth that the authority himself) that may lead to a weakened economy. obtained by the sultan to manage the government Accounting upholds the truth and coming from the holy resource (God). This magic- transparency in every process; starts from the asset religious legitimacy brought the opinion that the collection until the reporting activity. Hence, kadaton was not only as the sultan and his family accountability becomes a crucial element to ensure life place but also considered as of the proof the the users can benefit from the report to make existence of Ternate sultanate and strengthened the decisions (Mulya et al., 2014). The Sultan with his authority (Hasyim, 2018). title Alam ma Kolano (leader of the world)

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Figure 2. Ternate Sultanate Kadaton Source: taldebrooklyn.com (2019)

However, Ternate Sultanate also known had The philosophy of jou se ngofangare (leader valuable intangible assets in a form of oral and society) in suba jou literature or tradition. According to Hasyim The authority and legitimacy of the existence (2018), Ternate language previously was the oral of Ternate sultanate were not only about the myth (unwritten) language only, but the word Arabic- regarding the emergence of the Sultanate, but also Malay words used to write Ternate language after about putting the authority position to the cultural Islam came. As the traditional center and by the hegemony and religion theology. It can be linked time flies, the Ternate sultanate formalized the to the role of the sultanate as the main source of ternate language as the communication medium producing the science, belief system, social (lingua franca) used in trade activity (Hasan, stratification, status symbol, and lifestyle (Hasan, 2000:92). This story had explained by Tobias 2000). From the discourses, there was one cultural (1980) when he and the sultan conducted value which had important political weight or negotiation and agreement that the Sultan would dimension, namely Jou se Ngofangare (I and you) use Ternate language; it would be translated by the philosophy; you are my God and I am your translator to the Dutch language. servant. This philosophy was applied as the The oral/ unwritten tradition in Ternate Ternate Sultanate ideology. The philosophy Jou se Sultanate was a series of habit and behavior in Ngofangare was the religious basic which existed daily life which bequeathed from one to other in Ternate society before the Islamic came generation hereditary. This phenomenon also (Hasyim, 2018). Ontological, Jou Se Ngofangare happened in XIV to the XV century; there was was “al awwal” or the origin of all the things in assimilation with the Portuguese and Spanish this world (Sjah, 2006). This phenomenon had culture in the Babullah authority era. Islam gave a religious and philosophy meaning “gudu moju si significant influence to the oral language tradition to nonako ri jou si to suba” (I am a servant who in Ternate kingdom, but the traditional habit still knows you as my god and I will do the worship to existed and was used together as one unity without you (Jou)) any contradictive. This oral language tradition is This thought was not only limited to the God divided into some categories, such as cultural art, and servant relation but also implemented in the social, religious, and oral tradition which related to Ternate sultanate government concept. The Jou the animism belief and mixing in Islamic cultural means sultan and Ngofangare is the people/ (Leirissa, 1999). society (Dinsie, 2010). The philosophy of Jou se 162 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020 pp 151-166

Ngofangare was not only limited in the religion the accounting practices of the Sultan Babullah era dimension, but also implemented in the also applied the balance practice between life and government concept. The meaning of this concept hereafter. The policies carried out by Babullah is that a country or kingdom should have a leader were fair and objective. Thus, his people saw him and society. The society viewed the sultan as the as a humble sultan. individual who had superior ability which the The Sultan with his title Alam ma Kolano ordinary people did not have and it is coming from (King of the world), viewed his authority as the God. Lutfillah (2014) states that the single, united, and absolute. It means that relationship in the form of an agreement between competition, divided, and partitioned of or for the the Sultan and his people is a sacred agreement authority are forbidden. Therefore, the Ternate that has the aim of creating an atmosphere of sovereign sultanate believed the Alam ma Kolano security and peace. In this concept, the sultan was title gave them big responsibility doing the viewed as the Khalifatullah fiil ard or the God mission to strengthen the sultanate. They also messenger. Thus, the Jou se Ngofangare believed that the success of sultan’s authority was philosophy became the legitimacy source (Suryo, determined by his fully commitment in the 2001:102-107). fulfillment of the sultanate’s mission (Hasyim, According to the Moloku Kie Raha historian, 2018). Jou (sultan) and Ngofangare (society) was not Accounting practices in the Ternate Sultanate only adopted in political and religion side, but also of Sultan Babullah golden era especially in the used as symbolic of society daily practice. Some development side could be explored in the whole sultan's superiors ability were in form of parts. This study aims to analyze some accounting leadership, science, religion, physical and mental mechanisms by focusing on the market, taxation, that made to the society considered the sultan as and asset taken by the kingdom. The accounting the leader who had power (Hasyim, 2018). practice mechanism in this study was explored from the interpretation of inscriptions which may 5. Conclusions not reflect the whole reality of accounting practice This study was conducted to explore the in Sultan Babullah government era. accounting practice in the Ternate Sultanate of This study is not free from limitations. The Sultan Babullah era (1570-1583). This study found primary data is inscriptions where the Ternate that the development of accounting in written form people considered it as sacred things. Hence, the during the Sultan Babullah era was associated with researcher faced difficulties exploring the the use of money as the exchange medium and inscriptions deeply and it led to the difficulty transaction; the mechanism used for describing and understanding the content of administration and accountability in taxation and inscriptions clearly. asset accountability. In this era, accounting was For future researchers, it is imperative to understood in many types of transaction including compare the development of accounting in other the traditional market economy to the simple kingdoms from eastern Indonesia to find record of bookkeeping model. In addition, this similarities and differences. Thus it can develop study also found that Sultan Babullah adopted new perspectives on the role of accounting in religious values in the social transaction and the organizations and society. In addition, further social economy within the Sultanate. Moreover, researcher is expected to use different periods and this spiritual belief was an important concept discussion topics, so that the integrity and clarity implemented to reach the balance between of accounting construction in Indonesia's early material and spiritual life. It is also believed that history can be revealed. 163 Assagaf, Sukoharso & Baridwan/Jurnal Dinamika Akuntansi dan Bisnis Vol. 7(2), 2020, pp 151-166

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