Kampung Kapitan is the starting point of the ethnic Chinese settlement in the land of Palembang area. After Palembang War vs Verenigde Oost Indisce Compagnie (VOC) in 1659, followed by the establishment of Palembang Darussalam Sultanate in 1663, the Palembang Sultan did not allow foreign settlers to live in the land area of Palembang. When the Sultanate was conquered by the Dutch in 1821, the colonial government established a kind of representative office on the opposite side of Kuto Kecik’s Palace (now SMB II Museum).
The Dutch then dismantled and rebuilt the palace for the office of commissioners during the period 1823-1825. This was done after the partnership with the King it supported dissolved. Therefore, the building built on the opposite side was then handed over to the Chinese group for the administrative office when the Dutch imposed a system of people’s representation there in 1830.
The first Chinese leader who was appointed was Tjoa Kie Tjuan with mayor rank, in 1830. His duty was to mediate the Chinese community and the Dutch colonial government; including administrative affairs, population andtaxation. The famous captain was Tjo Ham Nio, who is the son of Tjoa Kie Tjuan. During the period, another Palembang – Chinese style building was built, as the first Palembang – Chinese – European building companion.