History of Banda Island

Until the early seventeenth century the Bandas were ruled by a group of leading citizens, the orang kaya (literally 'rich men'), each of these was a head of district. At the time nutmeg was one of the "fine spices" kept expensive in Europe by disciplined manipulation of the market, but a desirable commodity for Dutch traders in the ports of India as well; economic historian Fernand Braudel notes that India consumed twice as much as Europe. A number of Banda’s orang kaya were persuaded (or deceived) by the Dutch to sign a treaty granting the Dutch a monopoly on spice purchases. Even though the Bandanese had little understanding of the significance of the treaty known as 'The Eternal Compact', or that not all Bandanese leaders had signed, it would later be used to justify Dutch troops being brought in to defend their monopoly.

The Bandanese soon grew tired of the Dutch actions; the low prices, the useless trade items, and the enforcement of Dutch sole rights to the purchase of the coveted spices. The end of the line for the Bandanese came in 1609 when the Dutch reinforced Fort Nassau on Bandanaira Island. The orang kaya called a meeting with the Dutch admiral and forty of his highest-ranking men and ambushed and killed them all.