Tobacco plantation

Medan has not develop rapidly until the 1860s, when the Dutch authorities began to release new land for tobacco plantations. Jacob Nienhuys, Van der Falk, and Elliot, a Dutch tobacco merchants pioneered the opening of the tobacco plantation in Deli Land. Nienhuys previous tobacco business in Java, moved to Deli invited to an Arab from Surabaya named Said Abdullah Bilsagih, brother in law of Sultan Deli, Mahmud Perkasa Alam. Nienhuys first gardening tobacco on land owned by the Sultan of Deli of 4,000 hectares in Tanjong Spassi, near Labuhan. March 1864, Nienhuys sent samples of his crop of tobacco to Rotterdam, Netherlands to test its quality. Apparently, the tobacco leaves are considered high quality for cigar materials. Bounced Deli name as producer of the best cigar wrappers for Europeans.

The tobacco treaty was signed by the Sultan of Deli and the Dutch in 1865. After two years, Nienhuys together Jannsen, P.W. Clemen, and Cremer founded the company De Deli Maatschappij abbreviated Deli Mij in Labuhan. In 1869, Nienhuys move the head office of Deli Mij to Kampung Medan. The new office was built on the confluence of Deli and Babura river, precisely at the office of PTPN II (ex PTPN IX) now. With the transfer of the office, Medan quickly became the center of government activity and trade, as well as areas most dominating developments in western Indonesia. The rapid development of the economy transform Deli into a big trading center with the nickname as het land dollar aka the land of the money. Then, they open up new plantations in the area Martubung and Sunggal in 1869, as well in Sungai Beras and Klumpang 1875, bringing the total to 22 plantation companies in the year 1874. Given the activities of the tobacco trade is already very broad and growing. Thus the "Kampung Medan" is becoming increasingly crowded and then developed with a name that is known as the Medan-Deli.

The development of Medan-Deli a trading center has been pushed into the center of government. In 1879, Capital Assistant of Deli Residen moved from Labuhan to Medan. On 1 March 1887, the capital of the Resident of East Sumatra also moved from Bengkalis to Medan Deli Sultanate Palace which was originally located in Kampung Bahari (Labuhan) and Pulo Brayan also moved with the completion of Maimoon Palace on May 18, 1891, and thus the Capital Deli has officially moved to Medan.