ECONOMY

 

  

Majapahit Terracotta Piggy Bank, 14-15 century AD Trowulan, East Java. (Collection of National Museum of Indonesia, Jakarta)

Taxes and fines were paid in cash. Javanese economy had been partly monetised since the late 8th century, using gold and silver coins. In about the year 1300, in the reign of Majapahit's first king, an important change took place: the indigenous coinage was completely replaced by imported Chinese copper cash. About 10,388 ancient Chinese coins weighing about 40 kg were even unearthed from the backyard of a local commoner in Sidoarjo in November 2008. Indonesian Ancient Relics Conservation Bureau (BP3) of East Java verified that those coins dated as early as Majapahit era.^[27] The reason for using foreign currency is not given in any source, but most scholars assume it was due to the increasing complexity of Javanese economy and a desire for a currency system that used much smaller denominations suitable for use in everyday market transactions. This was a role for which gold and silver are not well suited.^[24]
Some idea of scale of the internal economy can be gathered from scattered data in inscriptions. The Canggu inscriptions dated 1358 mentions 78 ferry crossings in the country (mandala Java).^[24] Majapahit inscriptions mention a large number of occupational specialities, ranging from gold and silver smiths to drink vendors and butchers. Although many of these occupations had existed in earlier times, the proportion of the population earning an income from non-agrarian pursuits seems to have become even greater during the Majapahit era.
The great prosperity of Majapahit was probably due to two factors. Firstly, the northeast lowlands of Java were suitable for rice cultivation, and during Majapahit's prime numerous irrigation projects were undertaken, some with government assistance. Secondly, Majapahit's ports on the north coast were probably significant stations along the route to obtain the spices of Maluku, and as the spices passed through Java they would have provided an important source of income for Majapahit.^[24]
The Nagarakertagama states that the fame ruler of Wilwatikta (a synonym for Majapahit) attracted foreign merchants from far and wide, including Indians, Khmers, Siamese, and Chinese among others. A special tax was levied against some foreigners, possibly those who had taken up semi-permanent residence in Java and conducted some type of enterprise other than foreign trade.

http://en.wikipedia.org/wiki/Majapahit