All About VOC in Indonesia

Background Formed
Dutch urge for dominate trading in Indonesia, evidently not only Dutch urge but another country like England. In fact, England already precede Dutch with build an organization in trading for Asian region in 1600 the name is EIC (East India Company), this organization makes disturbed Dutch trader until must Dutch trader make an organization for make a competitor EIC Organization
For losing competition between Dutch trader and for confronting trading competition with other Europe country, and the at 20 March 1602, Maurits Prince and Olden Barneveld build a trading company the name is Veerigde Oost-Indische Compagnie (VOC). Center management VOC consist of 17 people. In the 1602 VOC make the first office in Banten and the head office is Francois Wittert

Purpose building VOC in Indonesia

1. Avoid trading competition between Dutch trader
2. Make stronger Dutch position inside confront trading competition with other Europe trader
3. Help Fund of Dutch Government who battle with Spanish

VOC Privilege (Octroi Right):
For dominate trading in Indonesia and can do a task of VOC, then VOC gave privilege (Octroi Right) from Dutch Government.

1. Dominate trading
2. Make money and circulate
3. Promote and sact employe
4. Make a decision with king of kingdom
5. Having army
6. Build Fortress
7. Make a war and peace
8. Promote and set king of kingdom

Because the VOC privilege makes VOC growing fast, even Portuguese begin pressed. The first governor VOC is Pieter Both (1610-1614). At J.P Coen governor period evaluate Jayakarta more than strategic, at 1611 successful dominate and change the name become Batavia. This city used central power VOC in Indonesia.

VOC Economic Politic
How VOC can get many profits is from dominate trading. VOC applying rule into trading in Indonesia. Here is economic politic VOC :

1. Verplichte Leverentie
   Verplichte Leverentie is agriculture product tax with price who permanently by VOC. This rule bans citizen to trade agriculture product to another trader
   
2. Contingenten
   Contingenten is obligation for citizen to pay tax with agriculture product
   
3. Extirpation
   Extirpation is a right of VOC for fell species tree in order to can't happen overbalance production who induce decrease value
    
4. Hongi voyage
   Hongi voyage is a voyage with use kora � kora boat to control VOC trade and take action offender

VOC Collapse
Dutch government finally decide to disband VOC at 31 December 1799. All VOC debt and wealth took over by the Dutch government. VOC disband caused :

1. Corruption
2. VOC debt
3. VOC spending caused war
4. Competition with Europe trader