Indonesian National Revolution
Renville Agreement

The United Nations Security Council brokered the Renville Agreement in an attempt to rectify the collapsed Linggadjati Agreement. The agreement was ratified in January 1948 and recognised a cease-fire along the so-called ' Van Mook line '; an artificial line which connected the most advanced Dutch tanks' positions. Many Republican positions, however, were still intact behind the Dutch lines. Some Republican militias, particularly laborers, peasants, and student troops, just couldn't leave thus must live (and operate) behind Renville Line. The agreement also required referendums to be held on the political future of the Dutch-held areas. The apparent reasonableness of Republicans garnered much important American goodwill.

Indonesian Republic faced economic hardship due to continued naval blockade and land blockades at Renville line (in violation of Renville Agreement) which affect sufficient avalailability of not only arms, but also food, clothing, medicines including bandages, mails, books, magazines, material to service and repair transportation, and overpopulation because of people fleeing from Dutch advances in Operation Product. This economic hardship paired with political crisis by accepting terms of Renville Agrement, and factional conflicts due to conflicting ideologies of Indonesian nationalists fed fuel to one of internal turmoils which later into Madiun Affair.

Diplomatic efforts between the Netherlands and the Republic continued throughout 1948 and 1949. Political pressures, both domestic and international, hindered Dutch attempts to decide upon objectives. Similarly, Republican leaders faced great difficulty in persuading their people to accept diplomatic concessions. By July 1948 negotiations were in deadlock and the Netherlands pushed unilaterally towards Van Mook's federal Indonesia concept. The new federal states of South Sumatra and East Java were created, although neither had a viable support base. The Netherlands set up the Bijeenkomst voor Federaal Overleg (BFO) (or Federal Consultative Assembly), a body comprising the leadership of the federal states, and charged with the formation of a United States of Indonesia and an interim government by the end of 1948. The Dutch plans, however, had no place for the Republic unless it accepted a minor role already defined for it. Later plans included Java and Sumatra but dropped all mention of the Republic. The main sticking point in the negotiations was the balance of power between the Netherlands High Representative (successor to office of Governor-General) and the Republican forces.

Mutual distrust between the Netherlands and the Republic hindered negotiations. Indonesia who faced aforementioned naval and land blockades (which violated Renville Agreement) also feared a second major Dutch offensive. Meanwhile, the Dutch objected to continued pro-Republican activity on the Dutch side of the Renville line.

In February 1948 the Siliwangi Battalion of the Republican Army, led by Nasution, marched from West Java to Central Java; the relocation was intended to ease internal Republican tensions involving the Battalion in the Surakarta area. The Battalion, however, clashed with Dutch troops while crossing Mount Slamet, and the Dutch believed it was part of a systematic troop movement across the Renville Line. The fear of such incursions actually succeeding, along with apparent Republican undermining of the Dutch-established Pasundan state and negative reports, led to the Dutch leadership increasingly seeing itself as losing control.
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