Dutch East India Company in Indonesia
Encyclopedia
The Dutch East India Company (VOC) had a presence in the Indonesia
n archipelago from 1603, when the first trading post was established, to 1800, when the bankrupted party was dissolved, and its possessions nationalised as the Dutch East Indies
.
Recognising the potential of the East Indies spice trade, and to prevent competition eating into Dutch profits, the Dutch Government amalgamated the competing merchant companies into the United East India Company (VOC). In 1602, the States-General of the Netherlands
granted it a 21-year monopoly
in the spice trade in Asia. It was awarded quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, coin money, and establish colonies.
and in 1611, another was established at Jayakarta (later 'Batavia' and then 'Jakarta
').
VOC headquarters were in Ambon from 1610 to 1619, and although it was located centrally in the spice production areas, it was far from the Asian trade routes and other VOC activity ranging from Africa to Japan. A location in the west of the archipelago was thus sought; while the Straits of Malacca were strategic, the Portuguese conquest had made them dangerous, and the first permanent VOC settlement in Banten was difficult due to control by a powerful local ruler and competition from Chinese
and English
traders.
In 1604, a second British East India Company
voyage to Maluku, and subsequent establishments of trading posts between 1611 and 1617 across the archipelago began Anglo-Dutch competition for access to spices as the Dutch monopolistic ambitions were threatened. Diplomatic agreements and cooperation between the Dutch and the English over the spice trade ended with the Amboyna massacre
where ten Englishmen were tortured and killed for conspiracy against the Dutch government, following which the English withdrew from their Indonesian activities (except in Banten).
In 1619, Jan Pieterszoon Coen was appointed Governor-General of the VOC. On 30 May 1619, Coen, backed by a force of nineteen ships, stormed Jayakarta (the location of Jakarta
) driving out the Banten forces, and from the ashes, established Batavia as the VOC headquarters. Coen's plans had included making Batavia the centre of intra-Asian trade from Japan to Persia and to Burmese, Madagascan and Chinese labour to develop the spice trade. Although this plan was never realised, Coen managed to establish a Dutch monopoly of the spice trade through an alliance with the Sultan of Ternate in 1607 to control the production of cloves, and the occupation of the Banda Islands
gave control of the nutmeg trade. The Dutch captured Melaka from the Portuguese in 1641 giving them control of the region's seas.
By the mid-seventeenth century Batavia had become an important trade center. It had repelled attacks from the Javanese Mataram kingdom
. The Dutch defeated the Sulawesi city of Makassar
in 1667 thus bringing its trade under VOC control. Sumatran ports were also brought under VOC control and the last of the Portuguese were expelled in 1660. In return for monopoly control over the pepper trade and the expulsion of the British, the Dutch helped the son of the ruler of Banten overthrow his father in 1680.
VOC policy at this time was to concentrate on its trading posts and to not become involved in costly territorial conquest. However, the company became deeply involved in the internal politics of Java in this period, and fought in a number of wars involving the leaders of Mataram
and Banten
(Bantam). The VOC reached an accord with the susuhunan (king) of Mataram
, Java's dominant kingdom, that only allowed Dutch ships to trade within the archipelago.
Although they failed to gain complete control of the Indonesian spice trade, they had much more success than the previous Portuguese efforts. They exploited the factionalisation of the small kingdoms in Java that had replaced Majapahit, establishing a permanent foothold in Java, from which grew a land-based colonial empire which became one of the world's richest colonial possessions.
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
n archipelago from 1603, when the first trading post was established, to 1800, when the bankrupted party was dissolved, and its possessions nationalised as the Dutch East Indies
Dutch East Indies
The Dutch East Indies was a Dutch colony that became modern Indonesia following World War II. It was formed from the nationalised colonies of the Dutch East India Company, which came under the administration of the Netherlands government in 1800....
.
Background
A 1596 Dutch expedition lost half its crew, killed a Javanese prince and lost a ship but returned to Holland with a load of spices, the profit from which encouraged other expeditions.Recognising the potential of the East Indies spice trade, and to prevent competition eating into Dutch profits, the Dutch Government amalgamated the competing merchant companies into the United East India Company (VOC). In 1602, the States-General of the Netherlands
States-General of the Netherlands
The States-General of the Netherlands is the bicameral legislature of the Netherlands, consisting of the Senate and the House of Representatives. The parliament meets in at the Binnenhof in The Hague. The archaic Dutch word "staten" originally related to the feudal classes in which medieval...
granted it a 21-year monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
in the spice trade in Asia. It was awarded quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, coin money, and establish colonies.
Early settlements
In 1603, the first permanent Dutch trading post in Indonesia was established in Banten, northwest JavaJava
Java is an island of Indonesia. With a population of 135 million , it is the world's most populous island, and one of the most densely populated regions in the world. It is home to 60% of Indonesia's population. The Indonesian capital city, Jakarta, is in west Java...
and in 1611, another was established at Jayakarta (later 'Batavia' and then 'Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
').
VOC headquarters were in Ambon from 1610 to 1619, and although it was located centrally in the spice production areas, it was far from the Asian trade routes and other VOC activity ranging from Africa to Japan. A location in the west of the archipelago was thus sought; while the Straits of Malacca were strategic, the Portuguese conquest had made them dangerous, and the first permanent VOC settlement in Banten was difficult due to control by a powerful local ruler and competition from Chinese
Han Chinese
Han Chinese are an ethnic group native to China and are the largest single ethnic group in the world.Han Chinese constitute about 92% of the population of the People's Republic of China , 98% of the population of the Republic of China , 78% of the population of Singapore, and about 20% of the...
and English
English people
The English are a nation and ethnic group native to England, who speak English. The English identity is of early mediaeval origin, when they were known in Old English as the Anglecynn. England is now a country of the United Kingdom, and the majority of English people in England are British Citizens...
traders.
In 1604, a second British East India Company
British East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
voyage to Maluku, and subsequent establishments of trading posts between 1611 and 1617 across the archipelago began Anglo-Dutch competition for access to spices as the Dutch monopolistic ambitions were threatened. Diplomatic agreements and cooperation between the Dutch and the English over the spice trade ended with the Amboyna massacre
Amboyna massacre
The Amboyna massacre was the 1623 torture and execution on Ambon Island , of twenty men, ten of whom were in the service of the British East India Company, by agents of the Dutch East India Company, on accusations of treason...
where ten Englishmen were tortured and killed for conspiracy against the Dutch government, following which the English withdrew from their Indonesian activities (except in Banten).
In 1619, Jan Pieterszoon Coen was appointed Governor-General of the VOC. On 30 May 1619, Coen, backed by a force of nineteen ships, stormed Jayakarta (the location of Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
) driving out the Banten forces, and from the ashes, established Batavia as the VOC headquarters. Coen's plans had included making Batavia the centre of intra-Asian trade from Japan to Persia and to Burmese, Madagascan and Chinese labour to develop the spice trade. Although this plan was never realised, Coen managed to establish a Dutch monopoly of the spice trade through an alliance with the Sultan of Ternate in 1607 to control the production of cloves, and the occupation of the Banda Islands
Banda Islands
The Banda Islands are a volcanic group of ten small volcanic islands in the Banda Sea, about south of Seram Island and about east of Java, and are part of the Indonesian province of Maluku. The main town and administrative centre is Bandanaira, located on the island of the same name. They rise...
gave control of the nutmeg trade. The Dutch captured Melaka from the Portuguese in 1641 giving them control of the region's seas.
By the mid-seventeenth century Batavia had become an important trade center. It had repelled attacks from the Javanese Mataram kingdom
Mataram Sultanate
The Sultanate of Mataram was the last major independent Javanese empire on Java before the island was colonized by the Dutch. It was the dominant political force in interior Central Java from the late 16th century until the beginning of the 18th century....
. The Dutch defeated the Sulawesi city of Makassar
Makassar
Makassar, is the provincial capital of South Sulawesi, Indonesia, and the largest city on Sulawesi Island. From 1971 to 1999, the city was named Ujung Pandang, after a precolonial fort in the city, and the two names are often used interchangeably...
in 1667 thus bringing its trade under VOC control. Sumatran ports were also brought under VOC control and the last of the Portuguese were expelled in 1660. In return for monopoly control over the pepper trade and the expulsion of the British, the Dutch helped the son of the ruler of Banten overthrow his father in 1680.
VOC policy at this time was to concentrate on its trading posts and to not become involved in costly territorial conquest. However, the company became deeply involved in the internal politics of Java in this period, and fought in a number of wars involving the leaders of Mataram
Mataram Kingdom
The Medang or Mataram Kingdom was a Hindu-Buddhist kingdom that flourished between the 8th and 10th centuries CE. It was based in Central Java, and later in East Java. Established by King Sanjaya, the founder of the Sanjaya dynasty, the kingdom was ruled by the Sailendra and Sanjaya families...
and Banten
Banten
Banten is a province of Indonesia in Java. Formerly part of the Province of West Java, it was made a separate province in 2000.The administrative center is Serang. Preliminary results from the 2010 census counted some 10.6 million people.-Geography:...
(Bantam). The VOC reached an accord with the susuhunan (king) of Mataram
Mataram Sultanate
The Sultanate of Mataram was the last major independent Javanese empire on Java before the island was colonized by the Dutch. It was the dominant political force in interior Central Java from the late 16th century until the beginning of the 18th century....
, Java's dominant kingdom, that only allowed Dutch ships to trade within the archipelago.
Although they failed to gain complete control of the Indonesian spice trade, they had much more success than the previous Portuguese efforts. They exploited the factionalisation of the small kingdoms in Java that had replaced Majapahit, establishing a permanent foothold in Java, from which grew a land-based colonial empire which became one of the world's richest colonial possessions.