It was only in the present century that the spirit of nationalism grew strong in Indonesia and the National Movement entered a new phase. The growth of nationalism in Indonesia became possible because the policy of western education had exposed a large number of Indonesians, specially those studying in Netherlands, to western developments and thinking and they took a lead to form Budi Utomo, the first Indonesia society in 1908.
Initially Budi Utomo was essentially a non-political cultural organization which was founded by Dr. Wahidin Sudiso Husudo, a retired Government Physician, with a view to work for the advancement of the masses. However, soon this body assumed political character and lost its membership to the nationalist organizations.
Soon another important organization known as Strek at Islam based on the principles of Islamic religion was formed with a view to organize the small indigenous industrialists. However, in course of time the party developed political tendencies and in 1913.
Put forward demand for self- government for Indonesia within the Dutch Empire. As the Dutch authorities did not respond favourably to this demand the Party declared its goal as attainment of complete independence by force, if necessary.
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The Dutch Government was obliged to make certain concessions to the Indonesians during the First World War. In 1916 they provide a People’s Council (Valksrad) a consultative body endowed with advisory functions.
Though this was quite an ineffective body, it provided the Indonesians a common platform to unite. The members bitterly criticized the lapses of the Dutch administration in the field of education and social reforms.