In 1915, the Residency of East Sumatra enhanced its status to Gubernermen. In 1918 the city of Medan officially became Gemeente (Municipal) with Mayor Baron Daniël Mackay. Based on the "Acte van Schenking" (Grant Deed) No. 97 Notary J.M. de-Hondt Junior, dated November 30, 1918, the Sultan of Deli handed over the land of Medan-Deli to the Gemeente, thus officially becoming the region under the direct rule of the Dutch East Indies. In the early days of this township, Medan still consists of four villages, namely Kampung Kesawan, Kampung Sungai Rengas, Kampung Petisah Hulu and Kampung Petisah Hilir.
In 1918 there were 43.826 residents of Medan , made up of 409 Europeans, 35.009 Native Indonesians, 8.269 Chinese and 139 East foreign such as Indians.
Since then the Medan developed more rapidly. Various facilities are built. Some of these include the Office of Experiment Stations named AVROS in Kampung Baru (1919), now RISPA, the railway of Pangkalan Brandan - Besitang (1919), Tirtanadi Water Tower (1908), American Consulate (1919), Teacher school on Jl. H.M. Yamin now (1923), Mingguan Soematra (1924), Pool Association Medan (1924), Central Market (Grote Markt/Toa Pa Sat or 大巴刹), St. Elizabeth Hospital, Eye Hospital and Kebun Bunga Sports field (1929).
Historically the development of the city of Medan, since the beginning has been positioned at the center of trade (export-import) since the past. being Medan choosed as the Deli capital also has made the city of Medan developed into a center of government. until now beside one of the areas of the city, also serves as the capital of North Sumatra province.
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