The Dutch responded by building up of an army of nearly two hundred thousand troops which defeated the Indonesian nationalists by attrition warfare. Following the Japanese surrender on 15 August 1945, Indonesian nationalist leaders Sukarno and Hatta declared independence instigating the Indonesian National Revolution. Japan's World War II occupation dismantled much of the Dutch colonial state and economy. In the early 20th century, local intellectuals conceived Indonesia as a nation state, and set the stage for an independence movement. The term Indonesia was used for the geographical location after 1880. The colonial social order was rigidly racial with the Dutch elite living separately from but linked to their native subjects. Using exploitative labour, the colony contributed to Dutch global prominence in spice and cash crop trade in the 19th century, and coal and oil exploration in the 20th century. The Dutch East Indies was one of the most exploited colonies under European rule. At the cost of hundreds of thousands of lives, the Dutch reign reached the greatest territorial extent in the early 20th century. North Borneo dispute ( Philippine militant attacks)ĭuring the 19th century, the Dutch fought many wars against indigenous rulers and peoples.
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