In order to overcome unhealthy competition and to break the Portuguese dominance, a member of the Staten General named Johan van Oldebarnevelt proposed a merger, a merger of all Dutch trading companies into one trade union. The proposal was well received. On March 20, 1602, it established the Verenigde Oost Indische Compagnie or East Hindi Trade Company, commonly known as VOC. With its first capital of 6.5 billion golden, the VOC is led by 17 directors.They are known as Heeren Zeventien.

In practice, the VOC has special rights, namely the monopoly of trade, the right to have soldiers, courts, and declare war. In addition, the VOC also has the right to print its own currency and the right to enter into agreements with local authorities on behalf of the Dutch government. According to these privileges, the VOC is a government and an autonomous trading agency. The presence of VOCs in the colonies was led by a governor-general. The governor-general plays two roles at once, as the director of the company and the head of government. The first Governor-General of the VOC was Pieter Both. Under his leadership, VOC activities in Indonesia began to organize and trade monopolies began to take shape. It defines the VOC's central position in Ambon. The choice is based on the fact that from Ambon activities to implement the spice trade monopoly in Maluku will be easier to do.

In the next development, Pieter Both moved the VOC's headquarters to Jayakarta. The reason for choosing Jayakarta is that Jayakarta is more strategic than Ambon because it is located in the middle of Asian trade lines; and if located in Jayakarta, the VOC would have been easier to get rid of the Portuguese based in Malacca. In executing the plan, Pieter Both sought the permission of Prince Jayakarta to establish a trading office in Jayakarta, which included Banten's jurisdiction. However, a few years later, the British EIC was also allowed to establish a trading office in Jayakarta. As a result, competition arose between the VOC and the EIC. Jan Pieterszoon Coen was appointed governor general during the EIC and the VOC debated the influence in Jayakarta. To win the competition, he set up a VOC fortress in Jayakarta. The fort is called Batavia. Later, he incited the ruler of Banten, Ranamenggala, to fire Prince Jayakarta and shut down the EIC trade. From May 31, 1619, the VOC acquired full ownership of Jayakarta. From then on, Jayakarta's name changed to Batavia.

Through Batavia, VOC has expanded its influence to various regions of Indonesia. The expansion of the deal was accompanied by the implementation of a trade monopoly. Through military strength and divisive skills, a number of territories are subject to VOC influence. To run the VOC trade monopoly create regulations, namely:
1) The spice farmer can only act as a producer. The sale rights are only VOCs.
Harvesting spices should be sold to VOCs at the prices specified by the VOC.
2) Daily necessities, such as household appliances, salts, and fabrics should be purchased from the VOC at the VOC's specified price. 

To operate the VOC trade monopoly has the right of extrusion and undertake sailing voyages. These two are VOC strategies for controlling their monopoly. The right of extrusion is the right to destroy the herbs that are considered excessive in order to keep the prices of herbs in the foreign market high. As for the hongi cruise, it is a fully armed cruise to monitor the excess spice and prevent the spice farmers from interacting with other buyers.

The expansion of the VOC's influence took place after the VOC took office in Batavia. After conquering Batavia, the VOC instilled political influence in the Kingdom of Banten. Later, the VOC migrated to the east and successfully weakened the Mataram Kingdom in Central Java through the Ginyanti Agreement and Salatiga Agreement. The VOC successfully planted its political influence in Makassar through the Bongaya Agreement. In Maluku, the VOC instilled its political influence through an agreement with local authorities. With Hitu, the VOC entered into an agreement to help one another with Portuguese influence. With Ternate, the VOC entered into an agreement in order to instil its influence in the Western Territory, Luhu, Kambelo, and Lusidi which included the VOC's territories.