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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