Analyzing the Greed of

Commerce Association
 A. The Birth of VOC
Originally, the Europeans' aim of coming to the
eastern world was to gain profit and wealth. This aim
was accomplished after they found spices in
Indonesia. The news about it was spread to the
other Europeans so that they were interested to
come to Indonesia. They interacted and competed
one another. The rivals could be from another nation
or the same nation. Therefore, each of them built
commerce group together. For example, English
formed a commerce association named East India
Company (EIC). Its head office was in Calcutta, India.
 A fierce competition also happened between the
commerce companies of Dutch. Each of them wanted the
victory in order to gain more profit. This fact drew the Dutch
government and parliament’s special concern because the
competition could disadvantage them. As a result, the
Dutch government and Parliament (Staten Generaal)
suggested the Dutch commerce groups to cooperatively
form a bigger trading company in 1598. The suggestion was
implemented four years later. On the 20th of March 1602, a
Dutch commerce association in Indonesia was officially
formed as the result of the fusion of the existed commerce
associations. This Dutch commerce associations was named
Vereenigde Oostindische Compagnie (VOC). It could also be
called Kongsi Dagang India Timur (East India Commerce
Association). It was officially established in Amsterdam.
• The goals of forming VOC were as follows:
1) to avoid unfair competition between the
Dutch commerce associations,
2) to strengthen Dutch’s position in facing the
competition with the traders from the other
countries.

VOC was led by a council which was consisted

of 17 people so that it’s called “The Council 17”
(de Heeren XVII). They were consisted of the
eight representatives of the port cities of
commerce in Netherland. The headquarter of this
council was in Amsterdam.
In performing the duty, VOC had several
authorities and rights. They were as follows:
1) Performing trade monopoly in the area from
the Cape of Good Hope to Magelhaens
Strait which included Indonesian territory,
2) Forming their own military army,
3) Starting a war,
4) Making agreement with local kings,
5) Producing and publishing their own money,
6) Appointing their own employees,
7) Governing their colony.
It can be said that VOC had very vast special rights
and authorities. As a commerce association, VOC
seemed like a country inside a country.
With their right to form their own military army
and to start a war, VOC tended to be expansive.
They kept colonizing the areas in Indonesia as their
area of power and monopoly. They thought the
other Europeans as their enemy.
Beginning their expansion in 1605, VOC succeeded
in driving out the Portuguese from Ambon. They
took over a Portuguese’s fortress, then they named
it Benteng Victoria (Victoria Fortress).
“The Council 17” had to directly execute the various
business of VOC including the expansion of monopoly
areas since their initial development until 1610. We can
imagine that The Council 17 was in Amsterdam and they
as Dutch had to manage the areas in Indonesia. It is
obvious that they could not do their daily duties quickly
and effectively. At the same time, the competition and
conflict with the other nations were also getting fiercer.
Considering this matter, VOC created a new position in
their institution. It was the governor-general. It was the
highest position in which the duty was to control the
colonies of VOC. Besides, the Council of India (Raad van
Indie) was also formed to advise and supervise the
leadership of the governor-general. The first governor-
general was Pieter Both (1610-1614). He built his first
trade post in Banten in 1610.
In the same year, Pieter Both left Banten and
successfully entered Jayakarta which was ruled by
Prince Wijayakrama. The prince was very open
minded to the matters of commerce. The traders from
any countries were free to trade. Those traders
included Portuguese, English, Indian, Persian, Arabian,
and Dutch. Therefore, Jayakarta with its Sunda Kelapa
harbor became a crowded city of commerce. In 1611,
Pieter Both was successful in making an agreement
with the ruler of Jayakarta to buy a plot of land. He
built a two-story building which was made of stone as
an office, house, and warehouse. He also succeeded
in expanding his influence in Moluccas and building a
trade post there.