Contrary to popular belief, KNILM was NOT a KLM subsidiary.
A consortium of Dutch investors put up enough capital to start an internal airline in the colony. One that was so succesful it threatened the position of Imperial Airways in the Far-East.
The airline was founded in 1928 and started operations the same year.
Sadly, it became a victim of postwar political manipulations and ceased operations in 1947, handing over its assets to KLM and later to Garuda Indonesian Airways.
Read the whole story in “KNILM, the airline of the Dutch East Indies”