As other local kingdoms capitulated or were defeated, the entire island came under Dutch control and became a part of the Dutch East Indies. There was little development of exploitative plantation economy on Bali, and common people noticed very little difference between rule by the Dutch and rule by the rajahs. Despite the long prelude to colonisation, Dutch rule over Bali was short-lived; Indonesia soon fell to the Japanese in WWII.
At the end of WWII, the Indonesian leader Soekarno proclaimed independence, but it took 4 more years to persuade the Dutch that they were not going to get their colony back. In a virtual repeat of the puputan nearly half a century earlier, a Balinese resistance group was wiped out in the Battle of Marga in 1946. In 1949, the Dutch finally recognised Indonesia's independence. In 1965, an attempted coup blamed on communists led to Soekarno's downfall. General Soeharto suppressed the coup and emerged as a major political figure.
The Communist Party was outlawed and a wave of anti-communist reprisals followed. On Bali, local communists were perceived as a threat to traditional values and the caste system because of their calls for land reform and an end to social repression. Religious traditionalists took advantage of the post-coup hysteria and led a witch hunt against communist sympathisers. Mobs rounded up suspected communists and clubbed them to death. The Chinese community was particularly victimised before the army stepped in and restored order, but no-one on Bali was untouched by the killings. An estimated 50,000 to 100,000 people were killed, at a time when the island's population only totalled two million.
Soeharto established himself as president, and under his government Indonesia looked to the West for alliances and investments. On Bali, economic growth and dramatic improvements in infrastructure were achieved by hugely expanding the tourist industry. This also resulted in the displacement of local populations and disruption of many traditional communities.
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