Restricted under Dutch East Indies law until 1919, the community elites later gained economic power through real estate investment and trading.

The census of 1870 recorded a total of 12,412 Arab Indonesians (7,495 living in Java and Madura and the rest in other islands).

[6] Arab traders helped bring the spices of Indonesia, such as nutmeg, to Europe as early as the 8th century.

According to Muslim Chinese writer Ma Huan who visited north coast of Java in 1413–15, he noted three kinds of people there: Chinese, local people and Muslims from foreign kingdoms in the West (Mideast) who have migrated to the country as merchants.

The Arabs and some of non-Arabs arrived during the Ottoman expedition to Aceh, which consisted of Egyptians, Swahili, Somalis from Mogadishu, and Indians from various cities, and states.

They were generally from upper strata and classified as "foreign orientals" (Vreemde Oosterlingen) along with Chinese Indonesians by the Dutch colonists, which led to them being unable to attend certain schools and restricted from travelling, and having to settle in special Arab districts, or Kampung Arab.

Through charity work and "conspicuous consumption", they built and protected their social capital; eventually, some Arab Indonesians joined the Volksraad, the people's council of the Dutch East Indies.

The majority of Arab Indonesians live in Java and Madura, usually in cities or relatively big towns such as Jakarta, Pekalongan, Cirebon, Surakarta, Kudus, Yogyakarta, Gresik, Pasuruan, or Surabaya.

[20] The census of 1870 recorded a total of 12,412 Arab Indonesians (7,495 living in Java and Madura and the rest in other islands).

[citation needed] Historically, most have lived in so called Kauman villages, in the areas around mosques, but this has changed in recent years.

The music is played by a music ensemble consisting of Lute, violins, Marawis, Dumbuk, Bongo drum, Tambourine, Suling (Indonesian version of Ney),[26] and sometimes accompanied with Accordion, Electronic keyboard, Electric guitars, even drum kit.