The company was formally dissolved in 1800 and its colonial possessions were nationalized by the Batavian Republic as the Dutch East Indies.

It was awarded quasi-governmental powers, including the ability to wage war, imprison and execute convicts,[5] negotiate treaties, coin money, and establish colonies.

[8] A location in the west of the archipelago was thus sought; while the Straits of Malacca were strategic, the Portuguese conquest had made them dangerous, and the first permanent VOC settlement in Banten was difficult due to control by a powerful local ruler and competition from Chinese and English traders.

[8] In 1604, a second British East India Company voyage to Maluku, and subsequent establishments of trading posts between 1611 and 1617 across the archipelago began Anglo-Dutch competition for access to spices as the Dutch monopolistic ambitions were threatened.

In return for monopoly control over the pepper trade and the expulsion of the British, the Dutch helped the son of the ruler of Banten overthrow his father in 1680.

The VOC reached an accord with the susuhunan (king) of Mataram, Java's dominant kingdom, that only allowed Dutch ships to trade within the archipelago.

Although they failed to gain complete control of the Indonesian spice trade, they had much more success than the previous Portuguese efforts.

The VOC was involved deeper into the Mataram court's intrigue and exploited the Javanese royalties tendencies to disintegrate, allowing them to gain a firm foothold in Java.

This led to the opposition of Asian trading polities, which made the VOC involved in a series of battles and conquests.

Rather, at a time when Europe was denouncing autocratic rule, hierarchy and hereditary rights, the VOC borrowed these values from Indonesian societies.