Inter-Island Maritime Trade Dynamics and the Role of KPM of Sulawesi at the Beginning of the 20th Century

- The southern part of Sulawesi played a very important and significant role in forming trade networks and economic integration between the 1900s and 1930s. Dynamics, change, and development are the main subjects of this research. This research aims to 1) reveal the dynamics of inter-island maritime trade and the role of KPM in Sulawesi, early 20th century, and 2) interregional economic development activities in southern Sulawesi, early 20th century. This research used qualitative method. The result of this research is revealing the dynamics and development of maritime trade in South Sulawesi at the beginning of the 20th century. The free trade policy that was implemented to a certain extent was able to increase trade enthusiasm, especially in the southern part of Sulawesi. The Dutch Government's political intervention was quite flexible since the early 20th century, making it easier for it to develop new economic policy directions. Local elites were successfully exploited in realizing economic networks and integration. Thanks to the government's transportation capability, through its Shipping Companies (KPM), the main routes of trade can be controlled as well as being able to control the movement of trade commodities. Moreover, Makassar serves as a transit and storage center for various trading commodities, both for shipments outside Makassar, as well as various goods that will enter this area. This Dutch economic policy allowed it to explore existing economic resources and channel them through controlled channels.