The idea behind the system was that instead of paying land taxes, the Java peasants / serfs would be forced to grow cash crops.
[3] Apart from the cultivation system, sugar manufacturers could process sugar cane on the particuliere landerijen, private manorial property of mostly Chinese and Dutch lords; or on uncultivated lands hired from the government.
[4] In 25 years, the sugar culture on Java developed from a rather backward business to an industry that competed on the world market.
The government itself levied lower taxes if raw sugar was exported to the Netherlands.
Dutchmen on Java who were not related to the public service saw themselves excluded from the profits that the system generated.
The liberals also gave scientific reasons to abolish the system, proving that it stifled innovation, and prevented the East Indies economy from achieving its full potential.
Apart from being unequitable, this caused further losses to the East Indies government, because competition would have led to more beneficial contracts.
[9] The Suikerwet was worded as a change to article 66 of the Reglement op het beleid der regering van Nederlandsch-Indië (statute for the government of the Dutch East Indies).
The objective to switch the Java economy from communalism to private landownership and free labor was not achieved.
The village elites were so powerful that the small landholder still did not get a realistic price for the land that he rented out to the factories.