The Organisation of Trade in North Sumatra

Abstract

A brisk, flourishing and independent local commerce and the integration of the population into local and regional trading structures are important basic conditions for the development and welfare of a region. Both are essential to ensure the availability of basic goods, the opportunity to gain private income and consequently the possibility to satisfy the daily needs of the population. Most of the Batak people are peasants or traders whose subsistence highly depends on local and regional economic processes. Located in one of the world's most potential commercial hotspots - the Straits of Malacca region - their homeland and the adjacent areas bear ideal preconditions to participate in local, regional as well as international trading affairs. Due to several circumstances, however, the Batak cannot make use of the situation and are, in regard to their economic potentials, extremely under-represented in their trading environment. Foreign multinational companies, Chinese traders and only a few successful local and regional businessmen are the present leaders and beneficiaries, who dominate and control trade and trading networks. As a result, the indigenous population of the province of North Sumatra is severely hindered to participate in local and regional trading affairs, to benefit from regional development and last but not least to manage their daily lives and satisfy their basic needs. Because this does not seem like an isolated phenomenon in the region, it is therefore of great significance to strengthen local commerce (which has been existing for hundreds of years) through a careful analysis of existing obstacles and restrictions and to identify possible strategies to encourage local trade participation.