The VOC was the paramount power of Indonesia led by Coen, Diemen and Maetsuyker, initiating crucial future changes. This single organization traded across a vast area, possesed superior forces, and employed servants to look after the East Indies.
We are also uncontrolled by the Dutch!
In the 1620s Sultan Agung, the ruler of the Central Javanese Kingdom of Mataram, sought to extend his Kingdom to Bantam (now known as Banten) in western Java. This started a conflict and Agung's forces attacked the Dutch fortress in Batavia.
Batavia's Growth; Trade
Sultan Agung’s forces were eventually obliged to withdraw, which left the Dutch and the Javanese aware of each other’s strength and power. Almost all of Java progressively became under the control of the Dutch. By 1775 only the Kingdom of Mataram remained uncontrolled by the Dutch.
This was divided into two principalities which are Yogyakarta (Jogjakarta) and Surakarta (Solo). Both principalities survived the Dutch’s rule till the end. However in the 19th century the Dutch rule expanded in Sumatra.
To improve itscommercial monopoly, the VOC created company factories. The VOC also controlledthe supply and sources of certain products. For example, clove production waslimited to Ambon and nutmeg to the Banda Islands. The trading system isdesigned to withdraw products/goods from the East Indies to be disposed in aEuropean market. Indigenous traders gained more control of the export trade.However, the VOC would always push them aside.
In the 18th century, the VOC had experienced financial difficulties. There are a few causes to this financial difficulty. The three reasons are smuggling, growing administrative cost and corruption of thecompany’s servants.