Both sides have made concessions. Republicans pledged to create an Indonesian federal state, while the Dutch recognized Sumatra`s admission to the Republic of Indonesia and Java. The two sides reached a compromise on the form of relations between the USI and the Netherlands. The Dutch had wanted a political union (Dutch state federation), while the Republicans only wanted an alliance (Dutch: bondgenootschap). The final agreement was for the USI to be a “sovereign and equal partner within a Union”, although the Dutch managed to convince the Republicans to approve the Dutch monarch as the leader of that Union.  On March 25, the Linggadjati Agreement was finally signed by the Netherlands and Indonesia at the Rijswijk Palace in Jakarta. In fact, two different agreements have been signed. The Dutch signed the agreement as interpreted by the Dutch Government and the Dutch Parliament, which means that they agreed on the creation of a sovereign and powerful Dutch-Indonesian Union, in which the United States of Indonesia and the Republic of Indonesia played only a minor role. The Indonesians signed the agreement in its more original form, accepting only a symbolic Dutch-Indonesian Union and wanting the United States of Indonesia to be fully sovereign, in which the Republic of Indonesia would play a predominant role. The agreement, a compromise between the Republic of Indonesia and the Netherlands, was generally favourable to the former. It gave the Republic of Indonesia a respite and much more: official recognition by the Netherlands and a definitive international status. It has thus created much better conditions for the struggle for total independence.
Leading circles in the Netherlands viewed the agreement as a forced and temporary concession. Once the agreement was concluded, they began to violate it, and in July 1947 they began a full-scale colonial war against the Republic of Indonesia. The agreement was signed on March 25, 1947 at 5:30 p.m. in Jakarta in the presence of 70 guests from the Netherlands, Indonesia and other nations. This was followed by speeches by Schemerhorn, van Mook and Sjahrir. There were celebrations in the streets of Jakarta and Palembang, South Sumatra. However, the agreement was interpreted differently by both parties, in particular as regards the meaning of the terms “cooperation” and “federal”.    The Linggadjati Agreement was concluded on November 27, 1946, a Dutch delegation and representatives of the Republic of Indonesia at the Linggadjati (Linggarjati) mountain resort near Ceribon on Java.
The agreement was signed in Batavia (Jakarta) on March 25, 1947. Linggarjati is not only the name of a small village on the slopes of the discouraging mountain. Ciremai and near Cirebon in West Java, but also the name given to an agreement. The Linggadjati Agreement was concluded on 12 November 1946 by a Dutch delegation and representatives of the Republic of Indonesia and was officially signed in Batavia (Jakarta) on 25 March 1947. On June 29, van Mook wrote to Sukarno to reiterate the main points he believed he had to agree, including the pursuit of Dutch sovereignty and the common police. The new Prime Minister Amir Sjariffuddin accepted the Dutch authority de jure, but refused to approve the joint police. The Dutch also called for an end to republican hostilities and a food blockade of Dutch-controlled areas before midnight on July 16. .