17

The dutch east india company

Batavia was sailing from the Netherlands to Java where the city of Batavia (modern-day Jakarta) was becoming an important base for the world’s first multinational company, the Verenigde Oostindische Compagnie (VOC). Officially the United East India Company and commonly known as the Dutch East India Company, the company’s trade reached across the Indian Ocean and stretched as far as Japan and China. The substantial wealth created was termed ‘a golden age’ of prosperity for this small, newly independent country.

The first expedition to the East Indies was organised by a consortium of nine Amsterdam businessmen. Four ships set sail in 1595, armed with weapons supplied free of charge by the Dutch government who were anxious to see the venture succeed. The ships returned three years later with pepper, nutmeg and mace. By 1601, fourteen fleets had travelled to the East Indies, with profits of more than 400% made by some of the more successful expeditions.

The VOC is formed

By 1601, the different East Indian companies formed by investors from different towns or regions in the Netherlands were beginning to compete seriously with each other, resulting in increasing prices. In 1602, a very original commercial institution was formed after lengthy negotiations by the Dutch Republic’s central government, the Verenigde Oostindische Compagnie (VOC). Cities or provinces, which had sent out East Indian expeditions were granted a ‘Chamber’ or branch establishment amounting to six chambers in total.

The VOC was given extraordinary independence from the Dutch federal government. It had a complete monopoly in the Far East and no independent Dutch merchants were allowed to operate there. The VOC had the right to set its own trade policies, conduct its own negotiations with foreign rulers, acquire and govern land in Asia, build its own fortified bases, raise its own military forces and wage wars. Control of the VOC was given to a board called ‘Heeren XVII’ or ‘Gentlemen Seventeen’ who were representatives of the different chambers. The city of Amsterdam was the greatest contributor to the VOC, however it held only eight of the 17 places on the board to ensure it did not become too powerful.

The VOC House in Amsterdam (Gezicht op het Oost-Inisch Huis te Amsterdam), by Z. Webber (II) 1665.

Credit: Rijksmuseum, Amsterdam