apanese occupation a Balinese military officer, Gusti Ngurah Rai, formed a Balinese 'freedom army'. The lack of institutional changes from the time of Dutch rule however, and the harshness of war requisitions made Japanese rule little better than the Dutch one. Following Japan's Pacific surrender in August 1945, the Dutch promptly returned to Indonesia, including Bali, immediately to reinstate their pre-war colonial administration. This was resisted by the Balinese rebels now using Japanese weapons. On 20 November 1946, the Battle of Marga was fought in Tabanan in central Bali. Colonel I Gusti Ngurah Rai, by then 29 years old, finally rallied his forces in east Bali at Marga Rana, where they made a suicide attack on the heavily armed Dutch. The Balinese battalion was entirely wiped out, breaking the last thread of Balinese military resistance. In 1946 the Dutch constituted Bali as one of the 13 administrative districts of the newly proclaimed State of East Indonesia, a rival state to the Republic of Indonesia which was proclaimed and headed by Sukarno and Hatta. Bali was included in the "Republic of the United States of Indonesia" when the Netherlands recognised Indonesian independence on 29 December 1949.
The 1963 eruption of Mount Agung killed thousands, created economic havoc and forced many displaced Balinese to be transmigrated to other parts of Indonesia. Mirroring the widening of social divisions across Indonesia in the 1950s and early 1960s, Bali saw conflict between supporters of the traditional caste system, and those rejecting these traditional values. Politically, this was represented by opposing supporters of the Indonesian Communist Party (PKI) and the Indonesian Nationalist Party (PNI), with tensions and ill-feeling further increased by the PKI's land reform programs. An attempted coup in Jakarta was put down by forces led by General Suharto. The army became the dominant power as it instigated a violent anti-communist purge, in which the army
