The Dutch East Indies only reached its full extension from Aceh (important for its oil) in the West to Western New Guinea in the east since 1920. Governor-General is Alidius Tjarda van Starkenborgh Stachouwer.
After the Wehrmacht overran the Netherlands in May 1940, van Starkenborgh declared martial law, ordering 19 German cargo ships to be seized and all German nationals to be interned pending the liberation of the Netherlands.
The Royal Netherlands East Indies Army (Koninklijk Nederlands Indisch Leger - KNIL) under Lieutenant General Gerardus Johannes Berenschot has about 85,000 Men, among those 1,000 Officers and 34,000 men, of which 28,000 are natives. Furthermore, there's the navy and the KNIL air force (Militaire Luchtvaart KNIL) under Ludolf Hendrik van Oyen with somewhat below 400 warplanes, albeit older ones.
The natives are discontent as well: From the Partai Nasional Indonesia (founded by Sukarno) to the Communist Party of Indonesia and the Sarekat Islam („Islamic Association“) all of them demand independence, and 200,000 (of over 60 million people) have joined them. Since the Dutch never forced the natives to learn their language, only 2% of those speak it. The new language of Indonesian (a real language only since the Congress of Indonesian Language I in 1938) is just spoken by 5% of the people either, but has support from leaders like Sukarno and Mohammed Hatta.
The "Blandas" (Whites) are split as well, between the native-born "Indos" and those coming from the mother country. The latter get all the top positions.