HIST363: Global Perspectives on Industrialization

From 1720 on, the market for sugar from Indonesia declined as the competition from cheap sugar from Brazil increased and European markets became saturated. Dozens of Chinese sugar traders went bankrupt which led to massive unemployment, which in turn led to gangs of unemployed coolies. The Dutch government in Batavia did not adequately respond to these problems. In 1740, rumours of deportation of the gangs from the Batavia area led to widespread rioting. The Dutch military searched houses of Chinese in Batavia searching for weapons. When a house accidentally burnt down, military and impoverished citizens started slaughtering and pillaging the Chinese community. This incident was deemed sufficiently serious for the board of the VOC to start an official investigation into the Government of the Dutch East Indies for the first time in its history.

During the eighteenth century, the possessions of the Company were increasingly focused on the East Indies. After the fourth war between the United Provinces and Great Britain (1780–1784), the VOC got into financial trouble, and in 1800,[7] the company was dissolved, four years after the States-General were replaced by the French supported Batavian Republic. This was soon replaced by French occupation. After the defeat of the French empire, the previously privately owned East Indies territories were granted to the newly created Kingdom of the Netherlands by the Congress of Vienna in 1815.