Accounting, Colonial Capitalists, and Liberal Order: The Case of Accounting History in Indonesia during the Dutch Colonial Period of the Mid-to-End of the 19th Century

Abstract

The paper represents an attempt to understand the historical factors which have led to the development of accounting in the range of rationales and socio-political contexts in Indonesia during the Dutch colonial period of the middle to end of the nineteenth century.  It is argued firstly that the nature  of  the  Dutch  radical  change  in  capital  and  financial  policies exaggerated the significant domination of the Dutch capital accumulation in  Indonesia  economy,  thus  establishing  a power-base  for  strengthening colonial strategy and position in the Indonesian archipelago. Secondly, the adoption of a new capitalist banking system in Indonesia led to its impact on new modes of Dutch capital domination and expansion.  Thirdly,  the paper  seeks  to  understand  how  the  Dutch  acquired  dominance  over Indonesians.  Accounting as one many “disciplines†played a major role with its order (in terms of financial policies) in operating and controlling the Dutch colonial innovation in Indonesia.