Paramita: Historical Studies Journal, 31(1), 2021 Paramita: Historical Studies Journal, 31(1), 2021, pp. 45-55 P-ISSN: 0854-0039, E-ISSN: 2407-5825 DOI: http://dx.doi.org/10.15294/paramita.v31i1.20463 Between Modernization and Capitalization: Commercialization of Malang in the Early Twentieth Century Reza Hudiyanto Universitas Negeri Malang, r.reza.fi[email protected] Article history Abstract: Colonialism, capitalism, and the city are three elements that always correlated. At Received : 2019-08-09 the beginning of the 20th-century cities, growth was inseparable from the economic expan- Accepted : 2021-03-20 sion of Dutch capitalism represented by the plantation industry, trade offices, insurance Published : 2021-03-31 offices, and elite shopping areas. e exploitation of urban space followed this process. As the regime changed in early 1942, the growth of the symbol of capitalism in the city was halt- Keywords ed by the Japanese Military Government. is article attempts to explain the relationship Colonialism between the development of capitalism, the modernization of the city, and its impact on Modernization society. To explain this connection, the author uses historical methods using the city govern- Capitalization ment report. Based on analysis of municipal tax report and the response of indigenous peo- Commercialization ple who lived within the city, it can be concluded that there is an influence of capitalism on the high intensity of exploitation and conflict in struggling for urban space. Modernization of the city is not merely efforts to create a city comfortable and hygienic, but the strategy of commerce urban space. Modernization of the colonial city has covered the suffering of most people that have their own way of living. Abstrak: Kolonialisme, kapitalisme dan kota adalah tiga unsur yang selalu berkorelasi. Pada awal abad ke-20 pertumbuhan kota tidak terlepas dari ekspansi ekonomi kapitalisme Bel- anda yang diwakili oleh industri perkebunan, perkantoran perdagangan, perkantoran asur- ansi dan kawasan perbelanjaan elit. Proses ini diikuti dengan eksploitasi ruang kota. Ketika rezim berganti pada awal 1942, pertumbuhan simbol kapitalisme di kota itu dihentikan oleh Pemerintah Militer Jepang. Artikel ini mencoba menjelaskan hubungan antara perkem- bangan kapitalisme, modernisasi kota dan pengaruhnya terhadap masyarakat. Untuk men- jelaskan hubungan tersebut, penulis menggunakan metode sejarah dengan menggunakan laporan pemerintah kota. Berdasarkan analisis laporan pajak kota dan respon masyarakat adat yang tinggal bersama di kota dapat disimpulkan bahwa terdapat pengaruh kapitalisme terhadap tingginya intensitas eksploitasi dan konflik dalam memperebutkan ruang kota. Modernisasi kota bukan semata-mata upaya menciptakan kota yang nyaman dan bersih, tetapi strategi perdagangan ruang kota. Modernisasi kota kolonial telah menutupi pender- itaan sebagian besar masyarakat yang memiliki cara hidup sendiri-sendiri. Cite this article: Hudiyanto, R. (2021). Between Modernization and Capitalization: Com- mercialization of Malang in the Early Twentieth Century. Paramita: Historical Studies Jour- nal, 31(1), 45-55. http://dx.doi.org/10.15294/paramita.v31i1.20463 INTRODUCTION It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love and never talk to them of our own necessitates but of their advantages. Nobody but a beggar chooses depend chiefly upon the benev- olence of his fellow-citizen (Hall, 1993). Available online at at quotation takes form Adam Smith, Wealth of Nation 1776 which indi- http://journal.unnes.ac.id/ cates that city life (in the West) is greatly inspired by what is called pragmatism or nju/index.php/paramita 45 Paramita: Historical Studies Journal, 31(1), 2021 the motive of seeking profit. Profit oriented became cy and in 1976 the program failed (Hall, 1993). the soul of Western colonialism which gradually began to spread amongst community of cities in Capitalism is the main force in the post-World Asia. e spread of colonialism in Asia brought War II era. e capitalist economy which was about what so called worldwide capital- supported by industry caused the accumulation of ism or global capitalism. Two factor that deter- capital in the hands of "few but holding a monop- mines the direction of urban development are tech- oly" group. From then on, this group controls firms and industries and divide them from local nology and social power and both were in hand of businessmen and then integrates these firms into capitalism. Natural resources provide the basic the power of global multinational compa- needs of human life in. However, aer the coloniza- nies. Oen, this trend moves into the political tion, the land has been used as an object of exploita- realm to influence the process of selecting local tion. Full investment technology has become a leaders, especially the mayor. is started the means of humans to convert a wild and vicious na- change from the old planning system to ture becomes become a comfortable place for the new system of inquiry where political issues them. Technology provides a save food supply for began to dominate policy making (Hall, 1993). city dwellers and changes raw materials to world market oriented products. e third factor is the e long history of colonialism proves that power structure. Power structure has been used by the orientation of Dutch colonialism namely which the ruler can consolidate and maintain pow- the spread of capitalism has encouraged the er to develop the formation of the city center. is growth of agents of capitalism in every city. e power structure is an important thing in the expan- main agent of capitalism is founding the compa- sion of the city both in terms of population and ar- ny. As Hall revealed about the key role of the com- ea. Secondly, social power is very important in the pany in the development of the city, Malang has process of converting suburban areas from rural to existed because of the existence of plantation com- urban. Structures of power are very important in panies. Since 1920, Gemeente has become a the process of maintaining city life from the threat "company" that has a tremendous impact of crime, rebellion and attacks from outside on architectural landscape from Malang. (Sjoberg, 1965). Research on city capitalization from a histori- In an article entitled e City of Entrepre- cal perspective is relatively new. Even in the latest neurs, Hall said that the dynamics of the city are research published in the book Car Conduit and strongly influenced by one factor, namely the com- Kampongs: e Modernization of the Indonesian pany. e company is very important both on eco- City 1920-1960 - which was the part of editorial nomically and politically towards urban plan- work of Freek Colombijn and Joost Cote, gave no ning. In the 1970s, the urban planning movement specific attention on the issue of symbol of capital- began to accelerate. During the 1980s, there was a ism (Colombijn & Coote, 2015). Most writings tendency to rebuild away from colonial past. New write down more colonial symbols in the cities aer meaning emerged as a response to old traditions decolonization then put the element of capitaliza- that were considered obsolete. e city is a machine tion as center of discussion. But none of those arti- for creating wealth, because at the first time city was cle depicted the correlation modernization and cap- design as place for making profits. Traditional ur- italization of the city and its impact to the indige- ban planning patterns changed from the 1910s to nous, particularly in middle size city like Malang. 1940s, along with the golden period of capitalism Capitalism developed in Europe, not in other which was also marked by extraordinary urban parts of the world. According to the North in Tracy construction. is does not only occur in cities in (Tracy, 2005), the key to the success of the develop- British but also in cities in America. e crisis in ment of capitalism in Europe lies on the ability 1964 until 1967 has prompted President Lindon of institutions to maintain pressing on the cost of Johnson's Government to double the urban anti- transaction, production and transportation. Second, poverty program, especially aer the 1967 riots. One financial institutions have a strategy to improve manifestation of this program is the development of production continuously. e main key to the suc- planning development models. the city which coor- cess of capitalism is the recognition of individual dinates with the community development associa- property rights (North, 1991). Capitalism began tion (association) program. is program aims to worldwide in the 19th century. is goes along with raise awareness among marginalized people. But, economic liberalization, transformation towards an this program was challenged by the local bureaucra- industrial country, evolution from a city state to a nation state, based on democratic values and sup- 46 Paramita: Historical Studies Journal, 31(1), 2021 ported by multinational economic networks. A de- illegal meat transaction and obligation to list their cisive change comes by the forming of capitalist meat on abattoir. e last step is drawing conclu- group which depend on wage labor rather than do- sions from both quantitative and qualitative data. ing it themselves. Market development was the main cause of the decline of feudalism which was a COLONIALISM AND EXPANSION strength of the status quo of Europe at that time. OF CAPITALISM According to Braudel, the market forms a dialogue Most cities in Indonesia were formed as the result focused on three main components: supply, de- of regional-trade activity, particularly throughout mand and prices. He argues that in capital system, fieenth century. Along with the increase number maximum profit can be earned by monopoly. Privi- of trading ships in the Southeast Asia seas, the leged monopoly is not based on those, the ship's coastal cities flourished on the North coast of Java.