Dutch East Indies era

The opening of the Suez Canal in 1869 meant strongly intensified traffic between Europe and the Far East. The Dutch started the shipping company Stoomvaart Maatschappij Nederland that quickly expanded to 43 steamships in 1877. The English, however, had already 3,000 ships in those days. A journey from Europe to Indonesia took approximately 40 days. Genoa, Italy became the new transit harbor for passenger ships after the opening of the Gotthard Tunnel in Switzerland. The journey was reduced to 23 days and 20 hours to Batavia (Jakarta). The ships also became bigger and more comfortable.

This resulted in an increase in cruise ships carrying predominantly white European origin came to Dutch East Indies tourists for a tour of the region, including Medan as the largest tobacco plantation in Dutch East Indies at that time. To accommodate the tourists, it is very necessary to have European-class hotels. Therefore, in 1898, a Dutch businessman named Aeint Herman de Boer built Hotel de Boer in the northwest of the Esplanade (now Lapangan Merdeka Medan).

Exports were very dependent on British shipping in 1890 when Sabang became a bunker harbor. Belawan got its harbor in 1923. The shipping company Koninklijke Paketvaart Maatschappij (KPM) was established for the purpose of shipping valuable Deli Company tobacco, which was shipped to Batavia. This cargo was almost as valuable and stringent rules regulated its handling. It was strictly forbidden to stow anything on top of the tobacco and coolies were not even to walk on it when they worked in the hatches.[10]

Cleaning of roads in Medan was, until 1912, done by prisoners. After that free coolies got the job. In 1917 the authorities started to use horse-drawn carts, equipped with brooms for the cleaning. In 1928 the horse-drawn carts were replaced by motorized vehicles. The first newspaper was the ‘Deli Courant’, established in 1885. It did not appear daily. In 1898, Joseph Hallermann, a German, established the daily ‘De Sumatra Post’, which survived until 1939.

There were planters in Medan from many countries: England, the Netherlands, USA, France, Germany, Poland, and Switzerland. Many of them became very rich and led an affluent lifestyle. Medan became known as the Paris of Sumatra. Up till today, the area in downtown where the old airport is located is called Polonia, a name given by a Polish aristocrat who once owned a plantation here. One area of Medan is still called Helvetia (the old name of Switzerland). This name was given by a plantation owner from Switzerland.