Early Sumatran Coins

Coins may have been first minted in Sumatra at some time in the 11th century. Sandalwood flower coins much like those of Java, and made of gold, electrum, and silver alloy, have been found at several 11th century sites in Sumatra including Barus, Bengkulu, and Muara Jambi, and also in South Thailand. These examples were very well made in comparison with silver alloy examples found in Java. Silver coins are rare in Sumatra; most are made of gold. No ancient coins have yet been reported as having been found at Palembang, despite abundant evidence that this was the site of an important port for centuries. This suggests that coinage may have had a limited role in the early Sriwijayan economy. International trade was probably conducted either through the mechanism known as tribulary trade, as in the case of China, or in another form known as administered trade. In this system, equivalencies were established between commodities through diplomatic negotiations rather than by bargaining.

Source: Indonesian Heritage Book Series