The Rise and Fall of the World’s First Corporate Empire and the Lessons Still Embedded in Borneo

The author stands against the backdrop of a VOC warehouse in the Sunda Kelapa complex, Batavia. That company, too, collapsed for five reasons.

By Masri Sareb Putra

The lessons drawn from the VOC’s collapse echo today’s oligarchies: any form of power, no matter how strong, will ultimately meet its end when it oppresses the people. Borneo, especially its Dayak leaders, should learn from history, even if others choose not to.

Founded on March 20, 1602, the Vereenigde Oostindische Compagnie (VOC) marked a turning point in global history. It was the world’s first multinational corporation endowed with sovereign powers. Backed by the Dutch state and governed by seventeen directors, known as the Heeren XVII, the company could wage war, sign treaties, mint currency, and administer vast territories across Asia.

For nearly two centuries, the VOC dominated maritime trade from the Cape of Good Hope to the Spice Islands. Its reach extended deep into the Indonesian archipelago, including large parts of Borneo. What remains today, however, is not a legacy of efficiency or progress, but a cautionary tale of monopoly, excess, and collapse.

Travelers discovering Borneo through platforms such as BorneoTravel encounter rainforests, winding rivers, longhouses, and indigenous cultures that existed long before European ships appeared on the horizon. These landscapes are not only scenic. They are historical archives, bearing witness to one of the earliest experiments in global corporate power.

The VOC did not collapse because it lacked authority. It collapsed because authority, left unchecked, turned inward and corroded its own foundations.

Corruption at the Core

By the eighteenth century, corruption had become systemic within the VOC. Company officials, from Batavia to Amsterdam, abused their positions through embezzlement, falsified accounts, and private trading schemes. Governance deteriorated into patronage. Profits that should have strengthened operations instead vanished into personal fortunes, weakening the company from within.

Militarization Without Economic Return

Maintaining dominance across Asia required constant military engagement. The VOC financed wars against local rulers, suppressed uprisings, and defended monopolies with costly armies and fleets. In Borneo, where indigenous societies were never fully subdued, resistance persisted. The financial burden of continuous conflict drained capital and manpower, diverting resources away from trade and innovation.

A Mountain of Debt

To sustain operations, the VOC relied increasingly on borrowing. By the time it was dissolved in 1799, its debts had reached 136.7 million guilders, a staggering sum for the era. Interest obligations alone became unmanageable. The world’s most powerful corporation was, in financial terms, bankrupt.

Global Competition and Structural Change

The VOC also faced mounting pressure from British and French rivals expanding into Asian markets. At the same time, Europe itself was changing. The late eighteenth century brought political upheaval, early industrial capitalism, and new ideas about state authority and economic governance. The VOC, rigid and antiquated, failed to adapt.

In 1799, the company was formally dissolved. Its assets, along with its liabilities, were absorbed by the Dutch state, ushering in a more direct form of colonial rule.

Why This History Matters for Borneo Today

Modern Borneo is often marketed as an untouched paradise. BorneoTravel takes a more grounded approach, presenting the island as a living landscape shaped by history, culture, and resilience. Rivers once used as colonial trade routes remain central to daily life. Indigenous communities continue to defend land, identity, and tradition after centuries of external pressure.

Understanding the VOC’s rise and fall adds depth to any journey through Borneo. It transforms travel into an act of awareness, connecting natural beauty with historical truth.

History delivers a blunt lesson. Institutions built on exploitation rarely require dramatic endings. They collapse under the weight of their own excesses.

Bad systems do not need to be dismantled.
They dissolve, because they deserve to.