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mx1

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I am not sure what exactly happened as I've only noticed this when looking at the production screen and noted that I have 500+ rubber as Germany in 1940.
I've played as Germany. Invaded Low Countries and France and Netherlands has capitulated soon. It still is in Allies faction and at war with Germany but somehow Java and Sumatra are now German occupied territory. I did not have any forces in the Far East so my guess is that these islands have been transferred under German occupation as a part of capitulation event. Attaching gamesave and screenshot showing the map.

20160614195417_1.jpg
 

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ForzaA

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At a guess - their capital moved to either island before you triggered their surrender (clever if you had done so on purpose, now a bit of a head scratcher) granting you their "capital area" when they surrendered.
 

mx1

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At a guess - their capital moved to either island before you triggered their surrender (clever if you had done so on purpose, now a bit of a head scratcher) granting you their "capital area" when they surrendered.

This explanation makes sense. I took their capital a couple of weeks before capitulation and capital was not present in Europe afterwards. Still a bug for me as it does not make much sense to give away area around capital half way across the globe.