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This is another idea I read off of Randy McDonald's Tripartite Alliance Earth. See The Case of Malaya. Please let me know if the link goes down.

In it, an unstable Malaya is independent post-WWII, with substantial Chinese and Indian populations, and it doesn't hang together very well. By 1971, Indonesia's army comes rolling in, and the Malay military actively helps them stomp on Chinese and Indian resistance groups. And thus a blob nation is formed. Of course, this is a timeline where there is for some reason fierce anti-Chinese/anti-PRC sentiment in Southeast Asia, egged on by a dystopian U.S. and its FBI(!!) subversives.

That said, could Malaysia and Indonesia have found their way into becoming part of the same nation in a less crazy way?

Sorry, Flocc, I don't know anything about SE Asia.
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