Dutch East India Company was a powerful trading company that helped establish Dutch rule in what is now Indonesia. In 1602, the Dutch government granted the company a monopoly on trade between Asia and the Netherlands. The company also received broad governmental and military powers, including the right to rule territories and to wage war in Asia.
By 1700, the Dutch East India Company had gained control of the cinnamon, clove, and nutmeg trade in the East Indies. The company had trading posts in many Asian countries and ruled parts of what are now South Africa and Sri Lanka and most of present-day Indonesia.
In the 1700’s, the demand for textiles from India, tea from China, and coffee from Arabia and Java exceeded that for spices. The Dutch East India Company had strong competition from the English East India Company and other traders. The Dutch company lost money and was disbanded in 1799.
