The East Indies comprised the richest portion of the Southern Regions. The Japanese conquest of this prize would have to await the end of the campaigns in Malaya and the Philippines, when adequate forces and bases would become available. The problems of defending the Indies were much the same as those encountered in the Philippines. The string of islands extends east and west for about 3,000 miles. Java, the most populous island, was highly developed, but the other islands were generally undeveloped and had limited land communications. A gigantic army would be needed to defend all of them. In December 1941, the Dutch Army in the Indies numbered about 140,000 men, who were concentrated mainly on Java. These were mostly native troops, poorly equipped and of uncertain combat efficiency. Available Dutch naval forces included 3 cruisers, 7 destroyers, and 16 submarines. The principal naval base was at Soerabaja (now Surabaja), Java. About 150 aircraft of all types, generally obsolete, provided the air defense of the entire Netherlands East Indies. Airfields were situated at key points on all major islands, with the largest bases on Java.

When the United States Asiatic Fleet withdrew from the Philippines, it began to operate from Soerabaja. Meanwhile, American Flying Fortress bombers that had withdrawn from the Philippines to Australia prepared to move into the Dutch air bases. By the end of 1941 the Allied situation in the Far East was deteriorating rapidly. Hong Kong had fallen, Allied troops in the Philippines were being compressed onto the Bataan Peninsula, Singapore was in grave danger, and the Japanese had established strong bases in northern Borneo and the southern Philippines. Under this pressure, Allied cooperation began to show signs of strain: the Australians urged adequate defense of their country, the British stressed the importance of holding Singapore, the Americans sought reinforcements for their beleaguered troops in the Philippines, and the Dutch pressed for assistance in the defense of the Indies. In an attempt to unify the direction of the Allied war effort in the Far East, Gen. (later Field Marshal) Sir Archibald Wavell (later 1st Earl Wavell) was designated supreme commander for all American, British, Dutch, and Australian forces. Wavell named his forces the American-British-Dutch-Australian Command (ABDACOM). Allied defensive strategy was now directed toward holding the Malay barrier, which was defined as the Malay Peninsula-Sumatra-Java-northern Australia line, with Burma and Australia as the essential supporting positions on its flanks. Communications with Luzon were to be reestablished and kept open through the northern Indies. The British sent reinforcements to Malaya and Burma and arranged for the return of two Australian divisions from the Middle East, and the United States made every effort to dispatch troops, supplies, and aircraft to the Indies.

All of these efforts were in vain. The rapidity of Japanese successes in the initial offensives made it possible to begin operations against the Indies sooner than had been expected. On Jan. 11, 1942, the first attacks were launched--at Tarakan, the Borneo oil port, and at Manado (Menado), a key base in Celebes. Succeeding landings are best shown on Map 38. At all places the Japanese easily overcame Dutch resistance. The small Allied air force could do little against greatly superior Japanese airpower. Allied naval strength in the area consisted of only 9 cruisers, 23 destroyers, and 36 submarines. Nevertheless, though no match for the vastly superior Japanese Fleet, the Allied warships attacked repeatedly. In the early dark hours of January 24, 4 Allied destroyers attacked a large convoy off Balikpapan, Borneo. In this, the Battle of Makassar Strait, the destroyers escaped unharmed after sinking 4 Japanese transports and a patrol ship and damaging other vessels. Subsequent engagements--the Battle of Lombok Strait (February 18-19) and the Battle of the Java Sea (February 27)--were not as successful for the Allies. In the latter losses from Japanese air and naval attacks were so severe that the surviving Allied warships were withdrawn from the Java Sea to Tjilatjap (Chilachap) on the south coast of Java. On February 28, 2 Allied cruisers, the Houston and the Perth, which were attempting to escape southward through Soenda (now Sunda) Strait, suddenly ran into a huge Japanese invasion armada in the process of assaulting Batavia (now Djakarta). The cruisers were destroyed, but only after sinking 3 loaded Japanese transports.

The few Allied aircraft and warships that remained were ordered to withdraw to Australia. On March 9, the Dutch finally surrendered the Netherlands East Indies to the Japanese. Allied attention was now directed to the defense of Australia. The enemy was not far away.