In the years between the two world wars in the early 20th century, the Dutch colonial empire did not fare as well as it did in the 17th and 18th centuries. There were tensions with Britain and France, while the Dutch economy was at the mercy of systemic shocks in Europe, and finally the belligerence of Germany and Japan posed serious challenges to Dutch power which were realised with the complete annexation of Dutch territory in Europe and Asia.
That is not to say, however, that the Dutch are wholly defenceless. It would be best said that the Dutch feature as a defensive faction concentrated on early-era air power and naval supremacy. Dutch airplanes are amongst the cheapest in the game, meaning that air superiority can be achieved rather well as long as supplies are forthcoming. The Dutch fleet is classified by use of the Java-class battle cruiser, which tends to be cheaper and better with regards to tactical capabilites, making the Netherlands a good choice in battles where advanced naval shipping is involved.
On land however, it is another story. Despite being a "minor power" the abilities of the Dutch at land warfare are very restricted, being capable only of creating a few antiquated units, as well as some armoured cars. Armour is nearly lacking - a Dutch player needs to cosy up to the Allied powers by researching Capitalism in order to unlock the Ram and Sherman tank lines, although it is to be noted that Universal Carriers are available for use and replace traditional supply wagons, limiting abilities in strategic diversification. This is offset by the Dutch propensity for cheaper point defences, and early access to the Foundry (and better metallurgical production) which may be useful although it might appear as cold comfort for some.
It might be best to say that for the Dutch, "the best defence is a good offence". Cheaper light aircraft followed by a most powerful cruiser line mean that the Dutch strategy is to use cavalry and infantry supplemented by a light aircraft blitz to take out enemy anti-aircraft and machine gun positions, while cheaper battle cruisers can be used to hold the sea in the early to mid-game. Ultimately, the Dutch may survive only on a map with lots of water and islands, with towers, ships and planes defending strategic sealing off access to Dutch holdings.
- Rifle infantry: KNIL Infantry
- Heavy rifle: Solothurn S-18/100 
- Commando: KNIL Mariniers
- SMG: Sten [3-5]
- Machine gun: Madsen
- Flamethrower (possible?)
- Light tanks/tankettes: Carden-Loyd# 
- Medium tanks: Ram  => M4 Sherman#  (available only if Capitalism was researched)
Save for the L-180. all of these units require Capitalism.
- Landsverk L-180 => Staghound Mk I [5??] => Humber Mk IV 
- Ram Badger flamer
- Siderius 02/04 Light artillery => Bofors 37 mm 
- Sherman Firefly  (requires Capitalism)
- Fighters: Biplane => [1-2] => Fokker D.XXI  => Hurricane H [4-6]
- Cruiser: Java-class light cruiser - Weakest but fastest-moving, fastest-hitting and cheapest of all cruiser-type ships.
- Special: Brinio and Flores - More powerful than normal motorboats. Armed with powerful and accurate guns, as well as excellent LOS, making them good for interception and recon duty.
- Repair Buildings 50% faster, and citizens can repair under fire without penalty
- Towers 33% cheaper
- Start with a Foundry.