Indonesia: A one-gulden Japanese-issued Dutch East Indies occupation banknote (1942)

The Japanese Empire occupied the Dutch East Indies, today Indonesia, during World War II from March 1942 until after the end of the War in 1945. The period was one of the most critical in Indonesian history. Under German occupation, the Netherlands had little ability to defend its colony against the Japanese army, and less than three months after the first attacks on Borneo the Japanese navy and army overran Dutch and allied forces. Initially, most Indonesians optimistically and even joyfully welcomed the Japanese as liberators from their Dutch colonial masters. This sentiment changed as Indonesians were expected to endure more hardship for the war effort. In 1944 - 45, Allied troops largely by-passed Indonesia and did not fight their way into the most populous parts such as Java and Sumatra. As such, most of Indonesia was still under Japanese occupation at the time of their surrender in August 1945.