Indirect rule are not unheard of in European colonies, especially so in protectorates and certain colonies ruled by British and Belgian. They are cheap way of ruling colonies, with less administrative overhead but it at came at price of their weak hold on those colonies compared to French and Spanish who often exercises direct rule in their own colonies. It's partly why British Empire decolonized rather quickly compared to other colonial powers, especially French, after WW2. British had sense of not wanting to get involved in expensive wars trying to hold their own colonies after end of WW2 (hence the rather haste they took with respect to partition of India that resulted in communal violence leaving many people dead there, much to criticism), whereas French, Dutch, and Portuguese fought wars in attempts to keep their own colonies that prove to be expensive and draining. Latter three had most of colonies under their direct administration at the eve of WW2.
There would need to be way to simulate the difference between indirect and direct rule of colonies if Paradox is to implement them. Perhaps administration spending in indirectly ruled colonies is reduced at price of higher local consciousness among the natives there?
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