What if the Japanese forces in Indonesia refused to believe their Emperor would surrender and carried on the war, but using Indonesia's resources and factories to fuel their renewed war effort?
In May of '45, a German UBoat lands and they give the Japanese plans for the advanced German weapons they were developing such as Vengeance Rockets and Radar guidance.
In Aug. '43, Shatsuo, Yanuta and Najukuwa arrive to Indonesia; they are factory owners and business men who have come to use the Indonesians as labor for their factories (early Globalization) as the Indonesians are close to the resources they need. By the time Germany was surrendering, Indonesia had a massive industrial base built in it's cities. Indonesia can build every piece of Japanese weapons except Battleships.
Mr. Najukuwa sets up a secret factory in the jungle to produce V2s. While Mr. Shatsup sets up a factory to build German electronics.
After seeing the devastation American bombers can do to Japanese cities, Mr. Yanuta moves his arms factories to the jungle.
Treatment of the Indonesians: The Japanese work them hard and sometimes to death as it is their place; the Indonesians accept this and enjoy increased rations for working for the Japanese(1).
Aug. '45: Admiral Tsumokoki (Tsunami nickname), refuses to surrender and creates skirmish attacks against the Americans in hopes of enticing them to invade Borneo.
Sept. '45: The war is considered, "Over" by most involved. The Americans do not want to continue fighting and send peace-envoys to Admiral Tsumokoki giving him dictatorial rights to Indonesia if he were to become British-vassal state. He then sends their heads back in a box stating it's dishonorable to make peace.
Nov. '45: Admiral Honnet is reluctantly ordered to invade and take Borneo. Moral of American soldiers is very low. He departs the Philippines with a naval-task-force consisting of several carriers, destroyers, cruisers, amphibious landers and various support ships. Using spotter planes, V2 are launched from Borneo with radar-guidance against the US Carriers; all are eventually hit and sunk; the rest of the task-force is hit by Japanese bombers operating at night; over a week, the task-force was virtually destroyed: American moral rises.
Dec. '45: Battle: The Philippines. Admiral Tsumokoki invades: Americans are surprised at his level of supply. American units face newly created Japanese armored and copied German 88 guns, which the Army was not prepared for. Within a month the Southern Island fell. In two, 2/3rds of the Philippines are in Japanese control.
Jan. '46: Japan moves subs with V2 launch capabilities and inflict massive loses to American naval vessels; it's at a rate, the Americans are not comfortable with.
Fed. '46: the Philippines fall, once again to Japanese forces.
From Iwo Jima, a bomber task force is sent to Indonesia to bomb the Japanese factories there. The Air-Force is surprised by the amount and effectiveness of Japanese air defenses and fighter pilots. Singapore is known as, "Flak-City" do to the number of AA guns around the city. American air-loses are unacceptable. However, they do reduce Japanese production.
Mar. '46: Japanese naval forces leave the Philippines and begin to retake some of the small islands like Palau, Guam and Kerema: in some instances, they are successful: in others, not.
Due to casualties, Indonesians units begin to replace Japanese units.
Bombing raids continue against the Japanese infrastructure in Indonesia.
Admiral Tsumokoki secretly approached by the Soviets with the promise of a secret alliance, but Tsumokoki still considered the Russians to be his enemies and refused.
Apr. '46: Due to Admiral Tsumokoki's successes, the Japanese are becoming restless on their island; the Army increases troops stationed there.
Bombing continues.
Iwo Jima invaded by the Japanese again; Americans use the very same caves the Japanese made to defend themselves. It is retaken; riots in the streets of Tokyo ensue.
The Emperor orders (some say at gun-point) to command Admiral Tsumkokoki to lay down his arms and surrender.
Jun. '46: The British invade Sumatra and the Australians invade Java: they face fierce fighting against a fanatical foe with technically advanced weapons.
Bombing of Indonesian cities by the Americans continues.
Jul. '46: Rebellion and Counter-Attack: US troops stationed in Japan face a major rebellion that partially succeeds. At this time, the US is able to muster it's forces and counter-attack with new weapons like jet-fighters. Although the V2s create massive ship-loses, the weight of the American Navy succeeds. Iwo Jima is retaken in only a month, however, Gen. Kakubata turned the volcano into a fortress to launch V2s and defended to deny landings. He had less men, but inflicted four times the casualty rate on the Americans than the first battle.
Aug. '46: Macarthur Returns Yet Again: The Americans land at the Philippines while taking massive casualties from Japanese weapons. Though, the weapons aren't as many as previously. They learn that the Indonesians fight just as fierce and fanatically as the Japanese do.
The Soviet Union invades Hokkaido in order to "Help" their American allies suppress the Japanese insurrection. Cold War really begins.
Sept. '46: Java falls to the Australians. The British are pinned down on Sumatra. Most Malaysian and Indonesian cities are in ruin from allied bombing.
Fighting continues on the Philippines: the Japanese call the new American-jets "Fire-Crackers" as they explode when hit.
Nov. '46: Fighting on the Philippines ceases with the Americans controlling 90% of the island.
Although the Japanese businessmen were clever to hide their factories, Allied intelligence discover half of them and bomb them.
Dec. '46: the British also invade Malaysia and head, as the Japanese did earlier, towards Singapore.
Dec. '46: the V2 sub-attacks virtually stop. The sub attacks are now with torpedoes, but more deadly as the Japanese are using wolf-packs.
Jan. '47: Dual-Island Invasion; the Americans invade Borneo from the north and the Australians from the south. Fighting is fierce as usual.
Admiral Tsumokoki declares all Indonesians to be citizens of the Emperor and Japanese citizens with full-rights and privileges thereof.
The Indonesian-Japanese army is now only Japanese officers and Indonesian soldiers.
Feb. '47: The British reduce forces on Sumatra and focus on Malaysia.
Mar. '47: False-intelligence led the British to believe there were no V2 rockets near the Stray of Malaysia: there were. The British lost several key military vessels in a vain attempt to cut Singapore off from the sea.
The Ichama: the last Japanese aircraft carrier sunk by the Americans near Borneo.
Apr. '47: the British reach Singapore but find it very well defended. Admiral Tsumokoki refuses to leave the city.
May, '47: the British are finding it difficult to take Singapore as the threat of a V2 strike prevents them from cutting off Singapore Sumatra gets reinforcements to head south.
Americans discover an IR factory in the jungles of Borneo and the secret to why Japanese night attacks by their aircraft were so effective; they could see perfectly in the dark.
Jun. '47: Borneo falls to the allies and the rebellion in Japan is finally crushed.
Jul. '47: Singapore falls when the British move south enough on Sumatra to protect against V2 attacks. Admiral Tsumokoki commits seppuku. The surviving Japanese and Indonesian forces on Sumatra prepare for the final battle.
Aug. '47: The Last Battle: America forces invade Sumatra by sea from the east; the Australians from the south and the British pushes from the north. They discovery stockpiles of weapons that are used against them. Soldiers said that every ten-seconds, a ship blew up.
Oct. '47: The battle was over; Sumatra had finally fallen to Allied-hands. There was no official surrender; most Japanese/Indonesian soldiers refused to surrender and died fighting in a way they could kill as many allied soldiers as they could. There was no one left of authority to surrender.
Nov. '47: American, British and Australian forces began to pull out of the area. The governor of Celebre surrendered to the Allies, but no one really cared.
Jan. '48: About a thousand Japanese and Indonesian soldiers landed at Okinawa and over ran the American airbase there: the attack had no military value and they had to send in nearby Marines to finish them off.
In all told, about 2 million Americans were casualties; of the one-hundred thousand Japanese in Indonesia that followed, Admiral Tsumokoki, 99% of them perished. One to three million Indonesian soldiers and about five-million Indonesians/Philippines/Malaysians died.
Mr. Najukuwa died in the first bombing raid; Mr. Yanuta was tried as a war-criminal and hanged. Mr. Shatsup was never heard from again.
1: From a book, Daily Life in Wartime Asia.