Читать книгу Indonesian Gold - Kerry B Collison - Страница 12

‘You seem to be in high spirits.’ Air Vice Marshal (retired) Sub-roto waddled back into his office, expecting the Australian, Eric Baird, to follow.

‘Looks like I’ll be able to meet those outstanding payments, Pak,’ Baird replied, respectfully.

‘What’s happened?’ The Air Vice Marshal dropped his one hundred and twenty kilos heavily into the specially designed, reinforced leather and teak seat.

‘I’ve signed with a Canadian group, Pak.You remember Kremenchug?’ Air Vice Marshal Subroto snorted with apparent distaste. ‘That lintah-darah?’

Baird disguised his annoyance with Subroto’s response referring to Kremenchug as ‘that bloodsucker’. ‘Something beneficial will come of it,’ Baird tried to placate.

‘He is a parasite – Indonesia doesn’t need people like him.’

‘Kremenchug has given us a great opportunity, Pak.’ Baird was apprehensive with the retired officer’s mood. He opened a fresh packet of cigarettes, flicked the bottom of the box, and offered the extended rokok to his sponsor. At first, Subroto ignored the offer then poked a chubby hand outwards, taking one of the clove sticks and holding it, ready for Baird to light.

‘Really, Eric, you should look for others to assist you with our business.’

Baird felt the familiar tug to his stomach – the uncertainty of operating in this country with quasi-legitimate status had a severe downside. Foreign investment laws required substantial capital contribution, the benefits, enormous in terms of tax holidays and other considerations; for those who were limited financially but could bring the necessary expertise, there were but few options. Even marrying an Indonesian woman could not guarantee legitimate status, for Islamic Code influenced the laws. Regulations prohibited Indonesian women married to foreigners from holding directorships and acquiring trading licenses; and, there was no guarantee that foreign men married to local women would have the right of residency, let alone citizenship. As for acquiring the latter, he was aware that only one Westerner had been awarded this privilege under the Suharto regime, not that he wished to emulate the colorful Stephen Coleman, who had long since distanced himself from these shores.

Years before, Baird had taken the path so many of his fellow expatriates had chosen, establishing an Indonesian nominee company to provide legitimacy to their presence. Now, as others had discovered, there was a price to pay.

‘You are right, Pak,’ Baird deferred to the white-haired Air Vice Marshal, ‘as soon as this contract is finished, I will not accept any more work from him.’

‘It would be better for all of us,’ Subroto advised. ‘The government is only interested in those who are serious about investing in Indonesia – and your friend does not fall into that description. He makes money from us without producing results for our people.’ He looked over expensive bifocals that had slipped down his near bridgeless-nose. ‘And, I know for a fact that Immigrasi has been keeping a close eye on his activities here.’

The mere suggestion that Immigration was monitoring Kremenchug twisted the knot in Baird’s stomach even more, the inevitable panic attack sending his hands searching for an inhaler.

‘Why are the authorities so interested in Alex?’

The General deflected the question. ‘Because of your association, they could have you under surveillance, as well,’ Subroto suggested, ‘and that makes me unhappy, Eric. I shouldn’t have to remind you that whatever you do, whom you associate with, all reflects on me. When I first joined AURI…’

Baird remained standing, as Subroto launched into one of his all-too-familiar harangues that would, predictably, revisit most of the Air Force General’s career, reminding himself that this was a small price to pay for the revered, Javanese officer’s sponsorship.

****

Baird had come to understand that Subroto’s early career had been tied, indirectly, to that of the country’s president. In 1962, when Indonesia waged war over the Netherlands’ last remaining outpost in Asia, West Papua, Subroto was there, serving under the Mandela Campaign commander, Suharto. It was a bittersweet time for the young General Suharto who had returned to the field, having been banished by the former C-in-C, General Nasution, accused of smuggling activities with the Chinese cukong, Lim Sioe Liong. At that time, Lieutenant Colonel Subroto and his fellow pilots had played a central role in the campaign, flying missions in their Soviet-supplied Tu-2, and Il-28 light, tactical bombers. Subroto had been more fortunate than many of his comrades during this confrontation, as the Dutch accounted for many of the inexperienced pilots during aerial engagements. Nevertheless, President Soekarno had heaped praises and medals upon all involved, when the future province fell to the Indonesians. And, as Subroto’s name was linked with Suharto’s with respect to the outcome, the AURI General was spared during the ignominious period that followed the coups of 1965, when the Indonesian Air Force was cleansed of its communist elements.

The AVM’s star had then remained in limbo up until the AURI 1985 reorganization, when a large number of the country’s senior ranking officers were either made redundant, or encouraged to enter Parliament, where the military maintained a controlling block of seats. Subroto had elected to move into private enterprise and was placed on the semi-retirement list, along with some fifty others of general rank, to assist with their transition from military to civilian roles.

It was because of Subroto’s close links with the Indonesian Ministry of Mines, that Baird first approached the retired officer seeking sponsorship. That, and the fact Subroto had worked closely with the Australians during the early Seventies, when the RAAF gave AURI a squadron of Sabres to assist rehabilitate operational air-defence training. When Subroto learned that Baird had the capacity to introduce foreign mining companies, the Air Vice Marshal agreed to provide legitimate shelter for the geologist’s activities.

At first, their arrangement had prospered. Baird, true to his word, succeeded in introducing a number of mining investment opportunities to Subroto who, in return, showed his gratitude by accepting the geologist into his family circle. But, when Baird’s reputation had later been sullied over his dealings with Kremenchug, their relationship had slowly deteriorated, further exacerbated by Subroto’s discovery of Baird’s deviate sexual preferences which, in turn, led to Mardidi being removed from the office staff, and the appearance of Subroto’s niece, Pipi Suhartono.

****

Baird remained politely interested, relieved that Subroto was nearing the end of his often-repeated tale.

‘And, when the Sabre flew over the rich rice paddies in Central Java, the pilot experienced a flameout, and ejected.’

Although Baird had heard this story before, he was always at odds as how best to respond to what happened next. As usual, he decided to appear quietly introspective.

‘Who would not believe in ‘adjal’, Eric?’ the General asked, rhetorically, referring to the belief that all death is predestined. ‘A simple farmer, tilling the soil, who has most likely never strayed more than a few kilometers from his village and land since birth, suddenly hears the rush of wind and looks up and, in that moment, is killed by this strange object falling from the heavens.’

It was normally at this point in the telling, that Baird would put on his serious face, feigning interest. ‘To die from old age or even disease is one thing. But, to be killed by

an ejection seat when one has never even seen an aeroplane, surely must demonstrate that Allah planned for this to happen? ’

This, Baird knew, was his signal to nod his acceptance. ‘It would certainly seem that way, Pak.’

‘Yes, that is precisely my point!’

Baird was surprised by Subroto’s deviation from previous closings.

‘If someone dropped something on you, Eric,’ the Javanese’s eyes danced mischievously, ‘then we would be obliged to accept that such a mishap was, undoubtedly, by Allah’s design.’

Eric Baird experienced a familiar, sinking sensation in his stomach. During his years living in this country, he had learned that opinions were regularly offered, disguised in the most oblique forms. Javanese disliked confrontation – and, even when addressing foreigners, rarely came directly to the point. However, Baird clearly understood the underlying threat Subroto had made.

‘Pak ‘Broto,’ he opened, reverently, ‘this time, Kremenchug has agreed to give us shares in the Kalimantan venture.’

‘You cannot trust this man,’ Subroto replied, obstinately.

Baird quickly calculated the value of his quarter of a million dollars in stock. ‘We will be given almost half a billion Rupiah worth of stocks in the Canadian company.’

Subroto removed his glasses, looked directly into Baird’s eyes, and started tapping the desk with a ball pen. The US dollar equivalent was around two hundred thousand, the sum far more meaningful in light of recent losses. After some moments of deliberation, he reached across and, waving the pen in the air, asked, ‘When?’

Baird was swept with relief. ‘Within the next months, Pak.’

‘You will keep my share in your name,’ Subroto ordered, ‘I don’t want any dealings with Kremenchug directly. Is that clear?’

That his sponsor had failed to thank him for the generous gift was of no consequence to Baird. Subroto could now be counted upon to support the Canadian venture, whenever obstacles appeared, as Baird knew they inevitably would. The mining industry had become an investment nightmare for the unsuspecting investor, the bureaucratic quagmire deliberately created by officialdom, a means for extracting payments from foreign participants.

‘I’ll make the necessary arrangements, Pak,’ Baird promised.

Subroto’s face turned friendly. ‘Speaking of arrangements, Eric, how are things progressing between you and my niece?’

Baird visibly trembled at the mention of Pipi Suhartono, unable to control his discomfort as he looked towards the closed door for escape.

‘I have been very busy with Kremenchug,’ he explained.

‘You shouldn’t neglect her,’ Subroto’s face suddenly became serious. ‘Pipi is very fond of you, Eric, and you are fortunate to have a woman of her quality and education as a companion.’

Baird felt his blood begin to freeze. Several months had transpired since Pipi had been introduced to him and, since that first meeting, Subroto had insisted that Baird accompany his niece to a number of formal functions, the most recent, a family wedding. Subroto’s intentions were frighteningly clear to Baird, his dilemma, how to avoid involvement with Pipi without offending his sponsor. At Subroto’s insistence, he had escorted Pipi to the movies once, and attended an outing to the Bogor gardens with members of her immediate family. Stunned when he discovered that it was assumed they were to become engaged, Baird had seriously considered leaving the country altogether, and had remained only because of Mardidi’s ineligibility to obtain a visa for Australia. ‘Pak ‘Broto,’ Baird’s hands were clasped in anxiety, ‘I have the greatest respect for Pipi, but I am not ready for another commitment just yet.’

Subroto’s eyes narrowed considerably. ‘Are you still involved with that banci?’

Baird’s stomach squeezed with the word. ‘Mardidi is not a banci, Pak.’

‘I am very disappointed, Eric,’ Subroto’s voice dropped so staff eavesdropping could not hear. ‘I thought I’d made it quite clear how I felt about that relationship?’

Bereft of an answer, Baird’s shoulders slumped, and he looked down at his feet, submissively.

‘He is just my very good friend, Pak,’ he said, knowing that he was on dangerous ground.

‘Is he the reason you don’t like Pipi?’ Subroto challenged.

‘No!’ Baird worried where this was leading. ‘I really do have deep feelings for Pipi, Pak, but I don’t want to take on any additional responsibilities until I know that I can handle these, financially.’ A wave of nausea threatened, and again Baird looked to the door for escape.

Subroto accepted the compromise. ‘Then don’t leave it too long, Eric,’ he admonished, ‘ladies like Pipi don’t grow on trees!’

‘I know, Pak, I know.’ Baird then mumbled something as he rubbed his stomach and grimaced, apologizing that he was not feeling well, and fled the office before Subroto could further advance their conversation.

****

Subroto squeezed into the Mercedes’ rear seat and instructed the driver to take him home. Fine, German engineering groaned underneath as the vehicle made its way through the congested city, heading south through Kebayoran Baru, through Kemang, and onwards to Cilandak. In pensive mood, the retired air force General leaned back into the deeply indented, leather seat and closed his eyes, pondering the import of Baird’s future involvement in terms of their consultancy arrangement.

When Baird had first come to him more than five years before, he had not hesitated in offering the young Australian geologist sponsorship, and the corporate structure to facilitate his business dealings in Indonesia. Subroto recalled that time of great excitement and promise, as the New Order, under President Suharto, forged ahead, dragging the country up to competitive speed with the emerging tiger economies of Singapore and Malaysia.

In the years following Suharto’s 1966 successful coup, Subroto had watched as many of the four hundred generals appointed under the Soekarno regime were either retrenched, or shifted to inconsequential positions. Fortunately, at the time of the bloodbath, he had been seconded to the AURI rocket program that had successfully launched the Kartika 1 the year before. The Air Force’s “Project Prima”, Indonesia’s rocket research project had been conceived with the intention of developing commercial and military rockets together with the Institute of Technology in Bandung, and P.T. Pindad, the Army weapons’ factory. Subroto had been instrumental in arranging for the Japanese cooperation which had seen the Kappa 8 rocket launched, also in the year preceding the turbulent period, predicted by one Indonesian Minister as becoming ‘The Years of Living Dangerously.’

Suharto’s armed forces had inherited a number of quasi, commercial structures put more into place out of expediency than sound planning, and dated back to the time of Soekarno’s Guided Democracy when regional commanders were forced to find their own means of funding operations and meeting personnel costs. As each of the Indonesian military arms vied for control over plantations, government owned hotels, sugar mills, banks, mining and timber concessions it soon became apparent that, without the necessary capital and management skills, these ventures would collapse. Even the Army’s Strategic Forces, Kostrad, which had been awarded the Volkswagen assembly and marketing agency in the early Sixties, benefited little from this opportunity.

After the Hughes Corporation had overseen the launch of Indonesia’s first series of satellites under the Palapa Program, Subroto became concerned with his future again, as contemporaries exited the armed forces en masse, many achieving civilian posts within the Suharto Cabinet, or appointments as governors, ambassadors and CEOs of Palace-controlled and TNI foundations.

Subroto had followed, apprehensively, as retiring air force generals were not in such great demand amongst the private sector. His one-off, lump sum pension payment was insufficient to maintain any reasonable norm of lifestyle, and certainly not one he had grown accustomed to whilst still a serving general. Consequently, he had turned to Kosgoro, one of the military-controlled cooperatives for a position, and was appointed as one of the many Komisaris advisors, to the Board of Directors. However, when (Danny) Dewanto Danusubroto, the Kosgoro President Komisaris was jailed for having the military murder his mistress not months after Subroto had joined the organization, Subroto wisely chose to move out on his own, where he met Eric Baird – and his fortunes instantly improved.

At first, their relationship had grown from strength to strength, Baird instrumental in delivering a number of substantial retainers that provided the former air force general with the wherewithal to reestablish his credentials. Within the year, Subroto had acquired a fully imported 450 Mercedes saloon (smuggled into the country by a Chinese expedition agent) and paid a nominal sum through the Veterans’ Association, to secure ownership of a Dutch Colonial home in Jalan Serang, Menteng. He renovated the residence and contracted the magnificent dwelling to one of his foreign clients, receiving a five-year, advance rental payment of three hundred thousand dollars, which he invested in property around the growing, expatriate suburbs of Kemang and Cilandak. But, influenced by Baird and his associate Kremenchug, Subroto had lunged into the stock market prior to the Independence celebrations on 17th August 1987, borrowing heavily to acquire mining stocks which Kremenchug claimed would double within the year. The following week, the markets peaked, and eight weeks later Subroto discovered that he had lost all that he had borrowed from the Asian Pacific Commercial Bank.

With cap in hand, he had approached the powerful Salima Family who maintained controlling interest in the APC Bank, and requested a two-year grace period before recommencing loan repayments. He was introduced to James Salima, the effective CEO of APC, and a deal was struck. Unbeknown to Eric Baird, his forty percent share in P. T. Subroto & Associates (which his sponsor had previously been held in trust) was surrendered to the wealthy Chinese, cukong family, and Subroto’s debt was forgiven.

Although his borrowings greatly exceeded the value of Baird’s stock in the company, the Salima group made it quite clear that Sub-roto could be called upon, at any time, to assist their family should the need arise. Subroto blamed his predicament on Kremenchug and would have arranged for the man’s visa to be cancelled had Baird not appealed, arguing that they were close to closing a deal which would recover all their losses. Against his better judgment, Subroto had agreed, now pleased that he had done so as Baird’s advice of that day seemed to support this decision.

Now, the only outstanding issue was having Eric Baird marry Pipi, which would not only satisfy his favorite niece, but would keep her mother off his back. With the Australian married into the family, the question of Baird’s shareholding in P.T. Subroto & Associates could be easily addressed. When the question arose, as he expected it would, Subroto would explain that Baird’s stock was then held in trust for his wife, Pipi, and who could argue with that?

Subroto knew that there had been no offspring from Baird’s former marriage, suspecting that neither would there be from his union with Pipi. This in no way offended the retired General – in fact, having the foreigner marry his sister’s daughter and not produce children resolved another family dilemma. Genetics had not been kind to Pipi’s father’s line; the incidence of Albino children running through that side of the family unusually high. All in all, Subroto thought, having Baird involved in business and the family, could only be a positive factor for all.

****

As Baird lay quietly contemplating his disastrous state of affairs, he recalled not having explained to Subroto that their stock in the new Canadian mining company would be held in escrow.

****

In the months that followed, the Borneo Gold Corporation (BGC) was launched in Canada, the shares rising meteorically as public relations’ rhetoric grossly exaggerated results from work carried out around the Palangkaraya concession. Air Vice Marshal (retired) Sub-roto, Kremenchug and Baird all waited with great expectations as their stock in BGC rose to more than double their par value then hovered, filling their futures with promise. When drilling of the Palangkaraya leases failed to produce the predicted results, the company moved operations further afield to the East Kalimantan areas. There, independent geologists oversaw a costly drilling program designed to substantiate earlier claims that the BGC acreage was amongst the most promising gold fields in Indonesia. The results proved otherwise, and before the first year of operations had come to a close and the Baird-Kremenchug-Subroto stockholders could offload their stock, Borneo Gold Corporation all but collapsed.

****