In a statement released yesterday, in The Hague, the Dutch state said it will also publicly apologise for the crimes.
"Ten widows have received compensation for the executions of their husbands by the Dutch military," said the statement.
"The ambassador of the Netherlands, on behalf of the state, will present apologies for the summary executions," it added.
The move brings to an end a battle for justice for relatives of the victims.
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It was not possible to bring criminal proceedings as the crimes took place too far back. But a civil suit was launched and a settlement was finally reached, on the basis of a September 2012 ruling of another case on a similar atrocity.
Zegveld said that Sulawesi inhabitants claim that between December 1946 and February 1947, approximately 40,000 Indonesians were killed on the island by the Dutch army.
Investigations carried out by the Dutch media claimed however that between 3,000 and 5,000 people lost their lives.
"The widows have already received the money, it is a similar amount awarded in the Rawagedeh case" in which compensation reached 20,000 euros (USD 27,000) per person, said Zegveld.
In that case eight widows and one survivor seized by the Dutch in 1947 in Rawagedeh, a village on the island of Java, were awarded compensation following a ruling in The Hague last year which held the Dutch state responsible for the atrocity.
Indonesia gained its independence in 1949.