The Portuguese first sailed to the Banda Islands in 1512, a year after Afonso de Albuquerque had conquered Malacca, which at the time was the hub of Asian trade.
Only in 1529 did the Portuguese return to the islands, when Captain Garcia attempted to build a fort on Banda Neira.
The local Bandanese turned against Garcia and his crew, forcing him to abandon his plans.
From that moment, the Portuguese preferred to buy nutmeg from traders in Malacca.

The Dutch followed the Portuguese to Banda but were to have a much more dominating and lasting presence.
Dutch-Bandanese relations were mutually resentful from the outset, with the first Dutch merchants complaining of Bandanese reneging on agreed deliveries and price, and cheating on quantity and quality.
For the Bandanese, on the other hand, although they welcomed another competitor purchaser for their spices, the items of trade offered by the Dutch—heavy woollens, and damasks, unwanted manufactured goods, for example—were usually unsuitable in comparison to traditional trade products.
The Javanese, Arab and Indian, and Portuguese traders for example brought indispensable items along steel knives, copper, medicines and prized Chinese porcelain.

As much as the Dutch disliked dealing with the Bandanese, the trade was a highly profitable one, with spices selling for 300 times the purchase price in Banda.
This amply justified the expense and risk in shipping them to Europe.
The allure of such profits saw an increasing number of Dutch expeditions.
It was soon seen that in trade with the East Indies, competition from each would eat into all their profits.
Thus in 1602, the competitors united to form the Dutch East India Company, which received a monopoly of trade with the East Indies from the States-General of the Dutch Republic.

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 Pieter Willemsz.
Verhoef and forty of his highest-ranking men and ambushed and killed them all.
The Portuguese first sailed to the Banda Islands in 1512, a year after Afonso de Albuquerque had conquered Malacca, which at the time was the hub of Asian trade. Only in 1529 did the Portuguese return to the islands, when Captain Garcia attempted to build a fort on Banda Neira. The local Bandanese turned against Garcia and his crew, forcing him to abandon his plans. From that moment, the Portuguese preferred to buy nutmeg from traders in Malacca.
The Dutch followed the Portuguese to Banda but were to have a much more dominating and lasting presence. Dutch-Bandanese relations were mutually resentful from the outset, with the first Dutch merchants complaining of Bandanese reneging on agreed deliveries and price, and cheating on quantity and quality. For the Bandanese, on the other hand, although they welcomed another competitor purchaser for their spices, the items of trade offered by the Dutch—heavy woollens, and damasks, unwanted manufactured goods, for example—were usually unsuitable in comparison to traditional trade products. The Javanese, Arab and Indian, and Portuguese traders for example brought indispensable items along steel knives, copper, medicines and prized Chinese porcelain.
As much as the Dutch disliked dealing with the Bandanese, the trade was a highly profitable one, with spices selling for 300 times the purchase price in Banda. This amply justified the expense and risk in shipping them to Europe. The allure of such profits saw an increasing number of Dutch expeditions. It was soon seen that in trade with the East Indies, competition from each would eat into all their profits. Thus in 1602, the competitors united to form the Dutch East India Company, which received a monopoly of trade with the East Indies from the States-General of the Dutch Republic.
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 Pieter Willemsz. Verhoef and forty of his highest-ranking men and ambushed and killed them all.
Governorate of the Banda Islands