At the beginning, the French made a treaty to the Dutch that the allied forces would hand over some parts of Indonesia to them.
The Dutch started an company called the VOC that focused on trading spices. The VOC had military support and servants. They forcefully made people comply to their desired trading ways.
FOLLOW OUR TRADE SYSTEM!
Throughout the years, the VOC were able to win over more areas through mini battles. They successfully won areas from the Portuguese and the English, as well as the pepper trade in Sumatra.
In the 1620's, the VOC encountered the sultan of the Mataram empire (during Mataram's conquest). They fought and became aware of the power both groups had. They continued fighting over areas and the VOC soon had control of most of the Mataram Empire.
Soon, the VOC started getting into politics and became the biggest political party of the government. They still focused on trade but had more power.
The VOC authorities forced factories and people to deliver and work there. They also forced taxes to people. The ‘trade’ they had with the farmers (who were suppose to sell the spices at a fix price) was instead a tribute and the revenue went oneway. The good then were sold in a European market.
In the 18th century, the VOC fell financially. This is due to corruption, smuggling, and higher production costs. Later on, the Dutch empire also fell because the French gained power. This led to the decline of the company in 1799.