Usual Storyline


Indonesian Good

What are some great things about Indonesia? by Julius Galih

Answer by Julius Galih:

Spice Trade as Underlying Business of World Stock Exchange

The Dutch Revolt of the 16th century (1568-1609) is probably the most neglected of the “classical” bourgeois revolutions. Although Marx and Engels only made a small number of scattered remarks on the Dutch revolt, it is clear that they recognized it as one of the essential moments in the historic rise of the bourgeoisie.

The Amsterdam Stock Exchange is considered the oldest in the world. It was established in 1602 by the Dutch East India Company (Verenigde Oostindische Compagnie, or “VOC”) for dealings in its printed stocks and bonds. [1]

VOC was established when the Dutch government granted it a monopoly to carry out colonial activities in Asia. It was the first multinational joint-stock company that issued public stock. Upon its creation, the VOC established the first stock exchange in the world, the Amsterdam Stock Exchange, for dealings in its printed stocks and bonds. [2]

Effectively, the East Indies for two centuries were not colonized by the Dutch Republic but by a joint-stock company, the VOC. It is indicative that during that period the indigenous population of the East Indies referred to their oppressor as the “kompeni” (taken from the VOC name, Compagnie).

For the next two centuries, the VOC became the most important trading company in Europe. It established a monopoly in spice trade, mainly pepper, cinnamon, and clove. During its first 90 years, the Company paid an average cash dividend of 18.7% every year. [3]

So, which one is the great thing about Indonesia? ” The Underlying Business of First Joint Stock Company and First Stock Exchange”, that’s it.

I know it sounds ridiculous, but even most Indonesian knew The Silk Road of China better than The Spice Route of South East Asia, or worst, Indonesian associated spices with the India, not previous East Indies.

It was and is great, because the silk and spices were commodity with high values as global commodity. The silk road was land based logistic supply chain, and spice route was maritime based.

The commodity from Indonesia was highly valued by global market, and it was involved into the evolution of global capitalism system, though our ancestors weren’t really enjoying it. The American revolutionary were funded from bond which was traded at Amsterdam Stock Exchange, even the Americans enjoyed it!

I am not proud with the great involvement, but such phenomenon should be told at school, so the new generation may grasp better understanding what capital system is, how it works, and they may learn something from history.

We learn from history that we learn nothing from history ( ouch!). Even me wasn’t really like history lesson, I collected the data about VOC and global trade because it had small relation with my business.


[1] Amsterdam Stock Exchange

[2] Tentang VOC dan arsipnya itu sendiri

[3] Diplomatic Letters VOC

What are some great things about Indonesia?


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


This entry was posted on September 27, 2016 by in Review.
%d bloggers like this: