23.2 History of Land Use and Businesses
23.2.1 Panglong Businesses in the Peatland Area from
the Nineteenth Century
Panglong businesses started around 1850–1870 on the islands of Riau, and at the
coastal area of Riau, Sumatra to supply timber, firewood, and charcoal to Singapore.
(Departemen Kehutanan 1986, p. 142; Anoniem 1916, p. 935).
Panglong businesses include logging (balkenkapperijen), sawmilling
(plankenzagerijen), firewood chopping (brandhoutkapperijen), and charcoal burning (houtskoolbranderijen) businesses. These panglong businesses in Riau extended
10 km from the coast of Sumatra, from Bagansiapiapi in the north to Indragiri in the
south. The islands of Riau-Lingga, such as Bengkalis, Roepat, and Padang, as well
as many small islands, were part of the business area (Pastor 1927, pp. 2–13).
Whom were the concessions given to and who controlled the panglong businesses and areas? Panglong operations started in the middle of the nineteenth
century, in the area mostly controlled by the autonomous sultanates. Earlier, these
sultanates enjoyed an independent status as sultanate states (sultan rijken) with the
same diplomatic status as Nederlandsch-Indië (Dutch East Indies), but around 1850
these sultanates were subordinated to the colonial government. For example, the
state of Siak Sri Indrapura (het rijk van Siak Sri Indrapura) became a part of
Nederlandsch-Indië by a treaty on February 2, 1858. Nevertheless, later in the
nineteenth century, these sultanates could still issue concessions to foreigners or
foreign companies that had status in Nederlandsch-Indië. For example, the Siak Sri
Indrapura sultanate issued concessions to agriculture, mining, and timber businesses.
In 1884 the sultan granted the Soengai Rawah concession for the timber sawing
business to “Handelsvereeniging F. Kehding” (Schadee 1918 deel II, pp. 50–67).
Panglong businesses paid tax to the sultanate through the tax-collecting system of
verpachting (tax collection contract) for the right to log, saw, or firewood chopping
and so on in Lingga in the1850s (Anoniem 1916, p. 935).
Autonomous governments (Zelfbesturende landschappen) administered the huge
forest area outside Java and Madoera. The forests outside Java and Madoera, that
were located in the area controlled by the autonomous governments, measured
650,000 km
2 . On the other hand, 558,000 km
2 of the forest was located in the area
directly controlled by the central government (rechtstreeks bestuurd gebied) (Bloem
1939, p. 344). Much of the peat swamp forests were also located in areas under the
autonomous governments. However, since 1898 the central government could
actually intervene in the business of autonomous governments in relation to forest
management, including the right to grant concessions (Bloem 1939, p. 348).
In the twentieth century, the heads of regional governments (hoofden van
Gewestlijk Bestuur) (not that of the autonomous governments) had the right to
grant concessions for forest exploitation (concessies tot boschexploitatie) for both
land directly controlled by the colonial government (rechtstreeks bestuurd gebied)
23 Land Tenure on Peatland: A Source of Insecurity and Degradation in Riau, Sumatra
629
23.2.1 Panglong Businesses in the Peatland Area from
the Nineteenth Century
Panglong businesses started around 1850–1870 on the islands of Riau, and at the
coastal area of Riau, Sumatra to supply timber, firewood, and charcoal to Singapore.
(Departemen Kehutanan 1986, p. 142; Anoniem 1916, p. 935).
Panglong businesses include logging (balkenkapperijen), sawmilling
(plankenzagerijen), firewood chopping (brandhoutkapperijen), and charcoal burning (houtskoolbranderijen) businesses. These panglong businesses in Riau extended
10 km from the coast of Sumatra, from Bagansiapiapi in the north to Indragiri in the
south. The islands of Riau-Lingga, such as Bengkalis, Roepat, and Padang, as well
as many small islands, were part of the business area (Pastor 1927, pp. 2–13).
Whom were the concessions given to and who controlled the panglong businesses and areas? Panglong operations started in the middle of the nineteenth
century, in the area mostly controlled by the autonomous sultanates. Earlier, these
sultanates enjoyed an independent status as sultanate states (sultan rijken) with the
same diplomatic status as Nederlandsch-Indië (Dutch East Indies), but around 1850
these sultanates were subordinated to the colonial government. For example, the
state of Siak Sri Indrapura (het rijk van Siak Sri Indrapura) became a part of
Nederlandsch-Indië by a treaty on February 2, 1858. Nevertheless, later in the
nineteenth century, these sultanates could still issue concessions to foreigners or
foreign companies that had status in Nederlandsch-Indië. For example, the Siak Sri
Indrapura sultanate issued concessions to agriculture, mining, and timber businesses.
In 1884 the sultan granted the Soengai Rawah concession for the timber sawing
business to “Handelsvereeniging F. Kehding” (Schadee 1918 deel II, pp. 50–67).
Panglong businesses paid tax to the sultanate through the tax-collecting system of
verpachting (tax collection contract) for the right to log, saw, or firewood chopping
and so on in Lingga in the1850s (Anoniem 1916, p. 935).
Autonomous governments (Zelfbesturende landschappen) administered the huge
forest area outside Java and Madoera. The forests outside Java and Madoera, that
were located in the area controlled by the autonomous governments, measured
650,000 km
2 . On the other hand, 558,000 km
2 of the forest was located in the area
directly controlled by the central government (rechtstreeks bestuurd gebied) (Bloem
1939, p. 344). Much of the peat swamp forests were also located in areas under the
autonomous governments. However, since 1898 the central government could
actually intervene in the business of autonomous governments in relation to forest
management, including the right to grant concessions (Bloem 1939, p. 348).
In the twentieth century, the heads of regional governments (hoofden van
Gewestlijk Bestuur) (not that of the autonomous governments) had the right to
grant concessions for forest exploitation (concessies tot boschexploitatie) for both
land directly controlled by the colonial government (rechtstreeks bestuurd gebied)
23 Land Tenure on Peatland: A Source of Insecurity and Degradation in Riau, Sumatra
629