East Timor (Timo Leste) History, Government and Politics, People, Culture and Religion. From the 16th century onwards, East Timor was a Portuguese colony known as Portuguese Timor. The rest of the island of Timor, and the other islands that were later to become Indonesia, were colonised by the Dutch between the 17th and 19th centuries, and were known as the Dutch East Indies. Portugal largely neglected the colony, using it mainly as a place to exile those who the government in Lisbon saw as "problems" - these included political prisoners as well as ordinary criminals. Although Portugal was neutral during World War II, in December 1941, Portuguese Timor was occupied by Australian and Dutch forces, which were expecting a Japanese invasion. When the Japanese did occupy Timor, in February 1942, the Allies and Timorese volunteers engaged them in a guerilla campaign. (See: Battle of Timor (1942-43).) This assistance cost the civilian population dearly: Japanese forces burned many villages and seized food supplies. The Japanese occupation resulted in the deaths of 40,000-70,000 Timorese