Departing the Middle East in late January 1942, Lloyd was promoted to brigadier and flew to Batavia in the Netherlands East Indies, where elements of the 2nd AIF had been diverted to whilst returning from the Middle East in order to meet the Japanese threat following their initial attacks against British Commonwealth and US forces in the Pacific in December 1941. He subsequently filled a senior staff posting in General Sir Archibald Wavell's ABDA Command during its brief existence, holding the position of Deputy Intendant-General with the temporary rank of major general between January and February 1942. Rising from major to major general in less than two-and-a-half years, he became the youngest general officer in the Australian Army at the age of 42. In this role he acted as Wavell's chief administrative officer; however, he advocated to the Australian high command against British proposals for I Corps to remain in Java, which he believed was unsound and likely result in its loss given the precarious tactical situation there, and that instead it should be returned to Australia to be concentrated for operations against the Japanese elsewhere. Ultimately while a few Australian units were landed in Java, where they were inevitably captured in the fighting that followed, the bulk of the 6th and 7th Divisions were returned to Australia after pressure from the Australian government.