Question

Why did the Dutch government establish direct control in the Indonesian colonies?

• A. To uplift Indonesia's economy.
• B. To improve its own economy.
• C. To help indigenous industries.
• D. To eradicate poverty from Indonesia.

Answer 1

The correct option is B To improve its own economy.

The Dutch East India Company established their rule in Indonesia. In 1800, the Dutch government disbanded its trading company and decided to rule its colony directly. This was to ensure a source of revenue for its declining wealth and improve its own economy.