The SoldatenKaffee ("The Soldiers' Cafe") was voluntarily shut down last July following death threats to the owner Henry Mulyana, who was accused of inciting racial hatred.
This time Mulyana has sought to escape criticism by broadening the theme of his cafe, adding images of other World War II figures like Winston Churchill and Josef Stalin alongside Nazi-related memorabilia that triggered global outrage.
Following its closure last year, Mulyana's lawyer had told AFP that the cafe would be reopened after a revamp -- without any swastikas.
"From the beginning I have said that the SoldatenKaffee is not a Nazi cafe. This cafe's theme is World War II," Mulyana told reporters at the reopening in the western Java city of Bandung.
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"All aspects of the SoldatenKaffee are legal. We have a lot of customers from Europe and they don't have a problem with the World War II theme, because it is seen here from a historical perspective," he said.
Dozens of mostly young Indonesians attended the opening dressed in military outfits, including one with a swastika armband, and some posed for photos as prisoners of war in a mock interrogation room.
"Some people who come here are intellectuals and many are observers who are keenly interested in World War II, and they're collectors," she said.
British, French, American, Japanese and Dutch military memorabilia were also on display at the reopened cafe.
Rizal Effendi, a 28-year-old first-time customer, also attended the opening, taking pictures in fascination of the memorabilia.