Iskandar Muda - Economy and Administration

Economy and Administration

The economic foundations of the sultanate was the spice trade, especially in pepper. The conflicts between Aceh and Johor and Portuguese Melacca, as well as the numerous pepper-producing ports in the sultanate's domain, were the main causes of the military conflict. Other major exports included cloves and nutmegs, as well as betel nuts, whose narcotic properties bypassed the Muslim prohibition of alcohol. Exports, encouraged by the Ottoman Sultans as an alternative to the "infidel" (i.e. Portuguese)-controlled route around Africa, added to the wealth of the sultanate. Iskandar Muda also made shrewd economic decisions that supported growth, such as low interest rates and the widespread use of small gold coins (mas). However, like other sultanates in the area it had trouble compelling the farms in the hinterland to produce sufficient excess food for the military and commercial activities of the capital. Indeed, one of the aims of Iskandar Muda’s campaigns was to bring prisoners-of-war who could act as slaves for agricultural production.

One reason for Iskandar Muda’s success, in contrast to the weaker sultans who preceded and succeeded him, was his ability to suppress the Acehnese elite, known as the orang kaya ("powerful men"). Through the royal monopoly on trade, he was able to keep them dependent on his favor. The orang kaya were forced to attend court where they could be supervised, and were prohibited from building independent houses, which could be used for military purposes or hold cannons. He sought to create a new nobility of “war leaders” (Malay language: hulubalang; Acehnese: uleëbalang), whom he gave districts (mukim) in feudal tenure. After his reign, however, the elite often supported weaker sultans, in order to maintain their own autonomy. He also sought to replace the Acehnese princes with royal officials called panglima, who had to report annually and were subject to periodic appraisal. An elite palace guard was created, consisting of 3,000 women. He passed legal reforms which created a network of courts using Islamic jurisprudence. His system of law and administration became a model for other Islamic states in Indonesia.

Iskandar Muda’s reign was also marked by considerable brutality, directed at disobedient subjects. He also did not hesitate to execute wealthy subjects and confiscate their wealth. Punishments for offenses were gruesome; a French visitor in the 1620s reported "every day the King would have people’s noses cut off, eyes dug out, castrations, feet cut off, or hands, ears, and other parts mutilated, very often for some very small matter." He had his own son killed, and named his son-in-law, the son of the captured sultan of Pahang, as his successor, Iskandar Thani.