The people of Indonesia had realised their right to self-determination after a long struggle against colonial ruler when they proclaimed their independence on 17 August 1945, which lead to the establishment of a free and independent Republic of Indonesia, covering the whole territory of the former Netherlands East Indies. Such a right, however, was challenged by the colonial power and an armed conflict between Indonesia and the Netherlands ensued. The conflict ended when the parties concluded a peace agreement under the auspices of the United Nations Commission for Indonesia resulting in the Round Table Conference, held at the Hague in 1949. The peace accord of 2 November 1949 was achieved as a result of the full recognition and acceptance by the Netherlands of the independence and sovereignty of Indonesia as reflected in Article 1 of the Charter of Transfer of Sovereignty (S/1417/Add.1) which provided :
"The Kingdom of the Netherlands unconditionally and irrevocably transfer complete sovereignty over Indonesia to the Republic of the United States of Indonesia as an independent and sovereign State". (*)