The first written accounts of Banda are in Suma Oriental, a book written by the Portuguese apothecary Tomé Pires who based in Malacca from 1512 to 1515 but who visited Banda several times. On his first visit, he interviewed the Portuguese and the far more knowledgeable Malay sailors in Malacca. He estimated the early sixteenth century population to be 2500-3000. He reported the Bandanese as being part of an Indonesia-wide trading network and the only native Malukan long-range traders taking cargo to Malacca, although shipments from Banda were also being made by Javanese traders.
In addition to the production of nutmeg and mace, Banda maintained significant entrepot trade; goods that move through Banda include cloves from Ternate and Tidore in the north, bird of paradise feathers from the Aru islands and western New Guinea, massoi bark for traditional medicines, and slaves. In exchange, Banda predominantly received rice and cloth; namely light cotton batik from Java, calicoes from India and ikat from the Lesser Sundas. In 1603, an average quality sarong-sized cloth traded for eighteen kilograms of nutmeg. Some of these textiles were then on-sold, ending up in Halmahera and New Guinea. Coarser ikat from the Lesser Sundas was traded for sago from the Kei Islands, Aru and Seram.
Unlike other eastern Indonesian islands, such as Ambon, Solor, Ternate and Morotai, the Bandanese displayed no enthusiasm for Christianity or the Europeans who brought it in the sixteenth century, and no serious attempt was made to Christianise the Bandanese. Maintaining their independence, the Bandanese never allowed the Portuguese to build a fort or a permanent post in the islands. Ironically though, it was this lack of ports which brought the Dutch to trade at Banda instead of the clove islands of Ternate and Tidore.
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 Holland’s first 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 with 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. It is even likely that the resulting boom helped finance an artistic renaissance in Holland support the likes of Rembrant van Rijn. The allure of such profits saw an increasing number of Dutch expeditions; it was soon seen that competition from each would eat into all their profits. Thus the competitors united to form the Vereenigde Oostindische Compagnie (VOC) (the ‘Dutch East Indies Company).
Until the early seventeenth century the Banda's 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.
While Portuguese and Spanish activity in the region had weakened, the English had built fortified trading posts on tiny Ai and Run islands, ten to twenty kilometres from the main Banda Islands. With the British paying higher prices, they were significantly undermining Dutch aims for a monopoly, and as Dutch-British tensions increased, the Dutch built, in 1611, the larger and more strategic Fort Belgica, above Fort Nassau. In 1615, the Dutch invaded Ai with 900 men and the British retreated to Run where they regrouped. That same night, the British launched a surprise counter-attack on Ai retaking the island and killing 200 Dutchmen. A year later, a much stronger Dutch force attacked Ai which itself was initially hampered by cannonade fire, but after a month of siege the defenders ran out of ammunition and were slaughtered. The Dutch strengthened the fort renaming it 'Fort Revenge'. European control of the Bandas was still contested up until 1667 when, under the Treaty of Breda (1667), the British traded the small island of Run for Manhattan, giving the Dutch full control of the Banda archipelago.
Newly-appointed VOC governor-general Jan Pieterszoon Coen set about enforcing Dutch monopoly over the Banda’s spice trade. In 1621 well-armed soldiers were landed on Bandaneira Island and within a few days they had also occupied neighbouring and larger Lontar. The orang kaya were forced at gunpoint to sign an unfeasibly arduous treaty, one that was in fact impossible to keep, thus providing Coen an excuse to use superior Dutch force against the Bandanese. The Dutch quickly noted a number of alleged violations of the new treaty, in response to which Coen launched a punitive massacre. Japanese mercenaries were hired to deal with the orang kaya, forty of whom were beheaded with their heads impaled and displayed on bamboo spears.
The population of the Banda Islands prior to Dutch conquest is generally estimated to have been around 13-15,000 people, some of whom were Malay and Javanese traders, as well as Chinese and Arabs. The actual numbers of Bandanese who were killed, forcibly expelled or fled the islands in 1621 remain uncertain. But readings of historical sources suggest around one thousand Bandanese likely survived in the islands, and were spread throughout the nutmeg groves as forced labourers . The Dutch subsequently re-settled the islands with imported slaves, convicts and indentured labourers (to work the nutmeg plantations), as well as immigrants from elsewhere in Indonesia. Most survivors fled as refugees to the islands of their trading partners, in particular Keffing and Guli Guli in the Seram Laut chain and Kei Besar. Shipments of surviving Bandanese were also sent to Batavia (Jakarta) to work as slaves in developing the city and its fortress. Some 530 of these individuals were later returned to the islands because of their much-needed expertise in nutmeg cultivation (something sorely lacking among newly-arrived Dutch settlers) .
Whereas up until this point the Dutch presence had been simply as traders, that was sometimes treaty-based, the Banda conquest marked the start of the first overt colonial rule in Indonesia albeit under the auspices of the VOC.
Having decimated the islands' population, Coen divided the productive land of approximately half a million nutmeg trees into sixty-eight 1.2-hectare perken. These land parcels were then handed to Dutch planters known as perkeniers of which 34 were on Lontar, 31 on Ai and 3 on Neira. With few Bandanese left to work them, slaves from elsewhere were brought in. Now enjoying control of the nutmeg production the VOC paid the perkeniers 1/122nd of the Dutch market price for nutmeg, however, the perkeniers still profited immensely building substantial villas with opulent imported European decorations.
The outlying island of Run was harder for the VOC to control and they exterminated all nutmeg trees there. The production and export of nutmeg was a VOC monopoly for almost two hundred years. Fort Belgica, one of many forts built by the Dutch East India Company, is one of the largest remaining European forts in Indonesia.
Some distance to the west:
To the east:
To the southeast:
Others, possibly small and/or uninhabited, are:
In addition, Bandanese speak a distinct Malay Dialect which has several features distinguishing it from Ambonese Malay, the better-known and more widespread dialect that forms a lingua franca in central and southeast Maluku. Bandanese Malay is famous in the region for its unique, lilting accent, but it also has a number of locally identifying words in its lexicon, many of them borrowings or loanwords from Dutch.
Finally, and most noticeably, Banda Malay uses some distinct pronouns. The most immediately distinguishing is that of the second person singular familiar form of address: pané.
The descendants of some of the Bandanese who fled Dutch conquest in the seventeenth century live in the Kai Islands (Kepulauan Kei) to the east of the Banda group, where a version of the original Banda language is still spoken in the villages of Banda Eli and Banda Elat on Kai Besar Island. While long integrated into Kei Island society, residents of these settlements continue to value the historical origins of their ancestors.