M Jasin recounts in his writing that the Japanese soldiers who entered the city of Surabaya used small bicycles. They did not fire shots but set off firecrackers along the road they traveled. Some historical records say that the people of Surabaya welcomed the arrival of the Japanese soldiers with great fanfare because the Japanese soldiers were considered liberators from the grip of the allies. The people of Surabaya were filled with joy and even flocked to the streets where the Japanese troops were passing through.

The Japanese forces that occupied Indonesia aimed to win the Greater East Asia War. Therefore, after the landing and mobilization of Japanese troops in Surabaya had been carried out, the Japanese government sought to strengthen its position by making several adjustments in terms of governance, particularly in the areas of defense and security. One of these measures was to use the most advanced steel factory in Surabaya, Lindeteves Stokvis, as a workshop for heavy weapons and military vehicles. During the Japanese military government, Lindeteves Stokvis was known as Kitahama Butai.

The arrival of the Japanese government had a significant impact on Surabaya's economy. Surabaya was one of the largest sugar producers in East Java. However, the Japanese government had new regulations regarding the management of the sugar industry. The Japanese government seized the Algemeene Syndicate van Suikerindustrie (General Sugar Industry Syndicate) and the Proefstation voor de Java Suikerindustrie (Experimental Station for the Java Sugar Industry). They also seized sugar plantations owned by the “enemy” (the Dutch), while those not owned by the “enemy” were allowed to continue operating. The activities of the “enemy-owned” sugar plantations were entrusted to six Japanese companies. The sugar factory formerly owned by Handels Vereeniging Amsterdam was managed by the Taiwan Seito company, while the one owned by Internationale Credit en Handels Vereeniging Rotterdam was managed by Meiji Seito. These sugar factories were more focused on supporting the interests of the Japanese military government.

The Japanese military government sought to win the hearts and minds of the people of Surabaya through propaganda. Interestingly, Japan even had a propaganda department called Sendenbu. Propaganda was carried out intensively, especially in the early years of the Japanese occupation. Various media were used in the propaganda, ranging from posters, films, music, drama, dance, kamishibai (paper theater), to matchbox covers. These propaganda efforts primarily aimed to boost agricultural output, encourage savings through the postal savings system, urge enrollment in the PETA (Japanese-backed militia), promote the replication of Japanese military uniforms and rank insignia, introduce the history of Java, and familiarize children with Japanese culture.

In addition, the Japanese government was also very anti-Western. They also sought to eliminate Western influence in Indonesia. One example of this was replacing Dutch or British leaders in both government and business with Japanese and Indonesian people. They also banned the use of Dutch and English in everyday life and replaced them with Japanese and Indonesian. European statues were demolished, and Dutch currency was replaced with Japanese currency, known as the Japanese rupiah.

Education during the Japanese occupation also eliminated the Dutch education system. Indigenous people were then given wider access to education without stratification and discrimination. Schools were allowed to fly the red and white flag and use the Indonesian language. A unique feature of education during this period was its semi-military curriculum. Semi-military school rules during the Japanese occupation included mandatory bald heads for boys, drill exercises, seikirei (sunrise salutes), kinrohoshi (community service), taisho (gymnastics), and even sumo wrestling as a sport for boys.