Political and Administrative Structure
- VOC Monopoly (1602–1799)
- The Dutch East India Company (VOC) acted as both a trading corporation and colonial government, with powers to wage war and collect taxes.
- Batavia (Jakarta)
- Became the administrative and commercial capital; the Dutch ruled indirectly through local princes.
- Decline of the VOC
- By the late 1700s, corruption, wars, and mismanagement caused bankruptcy; the Dutch state took control in 1799.
- Dutch State Rule
- The Netherlands created the Dutch East Indies (1816) as a colonial possession under a governor-general.
- Centralized Authority
- Replaced commercial control with direct governance and expanded territorial control across the islands.
Definition
VOC (Dutch East India Company)
- A Dutch trading corporation that monopolized trade in Southeast Asia.
Definition
Batavia
- Present-day Jakarta; center of Dutch power in the East Indies.
The Decline of the Dutch East India Company (VOC)
Causes of Decline
- The VOC became corrupt and inefficient, with officials focusing on personal profit.
- Faced competition from the British East India Company in Asian trade.
- Continuous wars in Java and rising administrative costs drained resources.
- Mismanagement and debt led to bankruptcy by 1799.
- The Dutch government nationalized VOC assets, ending company rule.
Consequences
- Marked the end of corporate colonialism and the beginning of direct state control.
- Shift from trade monopoly to territorial administration.
- New focus on agriculture and taxation to restore Dutch profits.
- Greater interference in local governance and land systems.
- Set the stage for later policies like the Culture System.
Economic Policies and Their Effects
- The Culture System (Cultivation System, 1830–1870)
- Forced Indonesian peasants to grow export crops (coffee, sugar, indigo) on one-fifth of their land for the Dutch.
- Government Profits
- Enormous revenues for the Netherlands; by the 1840s, Dutch colonial profits made up 25% of the Dutch national budget.
- Exploitation and Famine
- Peasants suffered from overproduction demands, poverty, and periodic famines(especially in Java).
- Liberal Policy (1870–1900)
