by David Nesbit
A few years after the inception of the company, racial undertones in the country once more came to the fore and the country again erupted. The Asian economic crises of the late nineties had a terrible effect on Indonesia, and once again ethnic Chinese were blamed in some quarters. Riots, demonstrations and racially motivated attacks took place throughout Indonesia, and within Jakarta particularly. Although the number of fatalities was much fewer than of those thirty-three years earlier, the consequences were just as far reaching. The incumbent President Soeharto was forced to step down after more than three decades of iron-fist rule and the value of the Indonesian rupiah collapsed by 85%. It was a time of worry and concern and for a while it looked as if Indonesia was on the brink of total anarchy and disintegration. However, things calmed down and the first totally free and independent elections were held and the country stabilized once more.
A few more years passed and finally the business started to pay better dividends. It was the start of the internet boom and people were becoming more aware of the necessities and advantages involved in learning English and so were keen to take courses and enrol with us. We began to get bigger and we took out two further franchises at more favourable rates and started to push the business forwards a bit.
This was, if I remember correctly, the dawn of the new millennium. I was by now employing Indonesian Business Managers to look after the mechanics of running the schools and expatriate Directors of Studies to run the academic side of things, while I took a step back and looked for more lucrative and less stressful ways of making a living.
I realized I needed to broaden both my horizons and my education if I was really to succeed in the private sector, and so I set about learning about the world of finance. I called on my old contacts and started networking, picking the brains of former colleagues, associates and friends of friends, while also taking courses in banking and investment. I learnt how to trade in futures and options, how to spot-trade without too much risk, and how to take advantage of the currency markets. This took time, about two to three years to really get on top of, but I could see this was where the future was at.
The best decision I made at this time, however, was to learn how to leverage low risk loans at favourable interest rates. Done correctly, an individual or company is given the means to obtain loans and advancements of cash that enable he or it to purchase companies and businesses without providing any upfront capital of their own. Basically put, the company they are purchasing is then saddled with the debts incurred from the takeover and not the individual or company making the purchase. This is perfectly legal but is subject to adherence to a host of rules and regulations. Again, these can be bypassed or at least relaxed through simply knowing the right people.
Back to Neil. In early 2003 we needed more teachers for our schools and so our BMs made the decision to advertise for some on the internet. This was usually a successful method of recruitment but things could still sometimes go wrong. As almost all of the candidates we received applications from in this manner were based in their home countries, we would have to invariably conduct interviews over the phone rather than face-to-face and occasionally we would end up getting things wrong.
Sometimes a candidate would be accepted and then would turn up in Jakarta as agreed but then, for one reason or another, turn out to be totally unsuited to life in Asia. The reasons for this were varied but usually contained some element or trace of immaturity. The teachers we employed were usually first-time teachers in their twenties or early thirties who fancied a year abroad and for whom the idea of living and working overseas for a while represented a challenge or an experience rather than a career choice. This could lead to problems such as them arriving and instantly becoming homesick, or failing to adapt to Indonesian culture and the people. The most common problem though, came from the young men we employed who got carried away with the pleasures Indonesia has to offer. I lost count of the number of guys who had their heads turned by the attention their white skin and ‘westernness’ provoked and then ended up getting into trouble with local girls or their families, or, more seriously, the local police and other authorities
due to drunken mishaps.
It was for this reason that we preferred to recruit teachers we felt would be here for the long haul and ones who had at least an inkling of the country, its mores, and what was expected of them. Admittedly, though, it was hard to attract such candidates because they would be a little older and so probably more experienced and qualified and thus less likely to accept the salaries we were offering, which although good by Indonesian standards were a long way behind those advertised in international schools and the like.
Well, to cut a long story short, we received an application from Neil who, as far as I knew, was still living in Surabaya at the time. Although I didn’t usually get directly involved in the recruitment process, in his application letter addressed to our BM he had written that he and I knew each other, and so the BM handed over his application to me. Thinking Neil was in Surabaya, I invited him over to Jakarta for a chat, and it was then he informed me he was actually in England at the moment but he could come over and meet me the following week.
So, a few days later and Neil and I sat opposite each other after a gap of seven years or so. He hadn’t really changed much in the interceding years: he still had that slightly awkward air about him – a kind of sense that he could hold his own in any situation or conversation, but would rather be left alone if it was all the same, thanks very much.
We chatted amiably enough and I asked him why he was currently in England and what his future plans were. I was interested to know why he wanted to come and work for me now having been so keen to work for himself the past seven years. He was a bit evasive at first but then lightened up.
‘Well,’ he started, ‘I just think it’s time for me to settle down and start to build a career.’
‘Why now?’ I questioned. ‘ I mean, I don’t want to say ‘I told you so’ but ‘build a career’ are the exact words I said to you back in Sidoarjo all those years ago.’
He was quiet for a minute then continued: ‘Well, I think Yossy and I have done well enough in our ventures, but it’s hard. It’s hard having to deal with immigration for visas every year and having to chase around looking for work all the time. I need something more permanent and stable now I’m no
longer young.’
This last utterance was said with the finality of someone much more advanced in years and took me aback slightly.
‘How old are you, by the way?’ I asked.
‘I’m 34 now.’
‘Well’, I countered, ‘that’s hardly old, is it?’
‘No,’ he said, ‘but it’s time to really get cracking and start providing for the future.’
‘Hmmm,’ I said. ‘So, anyway, why are you living in England at the moment, and without Yossy?
He then explained his reasoning behind his going to England and although I still got the feeling there was something, or some things, he was holding back, I think we both knew I was going to offer him the job and he was going to accept.
Actually, I needed a new Director of Studies for a new school opening as well as teachers for all the schools, but although I mentioned this to Neil we didn’t really discuss the prospect of him becoming the DoS at that time. Again, I got the impression that he was a little bit backwards in coming forwards and I wanted to see if he would push himself for the position, but he didn’t.
Anyway, we ended our meeting cordially enough and he then headed off to the airport to catch a plane back to Surabaya where he was spending a few days with his family before heading back to England.
I mulled the situation over in the next week or so and an idea began to form in my mind.
My other investments were beginning to pay small dividends and I was now ready to move things to the next level. Amongst my new business partners I had often heard it said that investment in property was a sure thing in terms of long-term growth. They arg
ued that in contrast with even the safest of financial money market trading, the value of bricks and mortar structures hardly ever depreciated and in fact almost always rose. It therefore stood to reason that if I were able to leverage enough capital to get started, then property management and development would be the next logical step.
A word here regarding my ‘new business partners’: these were in fact a conglomerate of people I had known from my days in the military together with some friends of theirs. These were an amalgamation of people from various walks of life and a mix of cultural, ethnic and religious backgrounds. The Group, as they were loosely known as, was a highly motivated and financially astute collection of individuals who had interests, financial and otherwise, in any number of business markets and ventures across the archipelago. Gaining access to and acceptance by The Group was not an easy thing to achieve, and one had to have both financial clout and impeccable contacts in order to gain entry to their inner circle. Thanks to my security services background, I had the contacts, and now with the help of my loan systems, I was able to contribute financially too.
Neil came to Jakarta a month or so later and started work in the new EPLC school in Cikarang Mall. I pulled a bit of a fast one on him on his first day by welcoming him to the branch and then showing him directly to his office.
His face was a picture of bafflement. ‘What’s this?’ He said. ‘Why am I getting an office? I’m just a teacher, right?’
I just grinned.
‘Nope. You’re the new Director of Studies. Congratulations. Evie here is the Business Manager. She’ll fill you in on the details. Good luck.’
And with that, I left them to it.
While Neil got on with the intricacies of being a DoS, I continued to build up my portfolio. Together with a kind of sub-committee consisting of some of The Group members, I started investing in property and getting involved in leveraged buyouts of existing businesses. Starting small, we took over a couple of restaurants in the Depok area of Jakarta and bought up empty lots of land in the Serpong principality. This land buying was with the long-term future in mind, because we knew this area would be developed intensely over the next decade or so and as a result we wanted to get in on the ground floor, so as to speak.
Business-wise I was learning. I was learning not just how and what to invest in, and how to find a bargain or a good deal, but also how to deal with people in the private sector. My years in my first career had taught me about discipline and how to follow it as well as instil it in others, as well as the value of having subordinates and outsiders alike if not exactly fear you, then at least wary of you and the power you yield. In business, I realized, while there were certain parallels, there were also some major differences too. For example, people in the private sector were greedier and more self-absorbed and less likely to do something they didn’t want to do just because the boss was telling them to. Job fluidity in Indonesia is particularly commonplace with nobody tending to stay in any job very long. It is not uncommon for a well-educated professional to have three or four jobs within a five-year span, and this fluidity of movement is much greater amongst the semi and unskilled workforce. This meant a different approach to man-management from the one I had been used to was called for. No longer could I expect people to turn up to meetings on time, for example, or for something to be done just because I was requesting it. No, I had to find other ways to handle people and instil loyalty.
As I said, people are basically greedy and have loyalty only to themselves and, possibly, to their families, so I learnt that the way to get people onside was through their wallets. I resolved to pay good wages with decent perks to get the people I wanted in place in the first instance, and then lay down the law in order to keep them in line the best I could. I found that a stern face devoid of smiles or laughter was pretty much all I needed to display in the majority of cases, and this in fact led to me building up an aura of being a bit frightening and thus kept most people in line.
Some things, however, remained the same as in my previous world. My skills included being able to read people and being able to sniff out any weaknesses or deficits in character as well as strengths and plus points. This meant that, by and large, I recruited well and so was able to let my managers and their staff get on with the day-to-day running of the various businesses while I took a bit of a back seat and looked to increase the financial backing and security of my portfolio.
Working together with The Group wasn’t ideal, and I would have much preferred to have been in a position back then to have gone alone, but it wasn’t financially possible at the time, and anyway, I knew that the contacts and security The Group offered were an insurance for the future.
Meanwhile, Neil was settling into his role as the Director of Studies at EPLC in Cikarang and, I have to say, making a decent fist of things. That said, though, it would be hard not to being doing relatively well in what was basically a captive market. We had done our due diligence with regards to market research and marketing, and had secured a prime location and then set about on a top-notch advertising campaign. The students were rolling in and all it needed was someone to keep a lid on the quality of academic teaching, which Neil was doing a good job of, to be fair, and in no time at all the school was showing a working profit. This was despite the rather high rental and employment costs involved.
I didn’t see that much of Neil in this time as he worked closely with Evie, the BM, who reported directly to me, but I would pop in from time to time to see how he was doing and just to keep him and everyone else on their toes a bit. Neil was, as ever, pleasant enough and hard working without ever really giving the impression of being awe-inspiring. He was what I used to describe as ‘clever but not too clever’ or perhaps even a bit of a ‘mysterious boy’.
Evie, the Business Manager I had deigned to work with Neil, was in fact a distant relative of my wife’s, and it was her remit to maintain student numbers, organize marketing and promotions, and deal with the financial side of matters with a number of staff working directly under her. I also requested her to keep a close eye on Neil and report back to me anything noteworthy at all. When she pressed me on what I would consider ‘noteworthy’, I explained that I was looking for information regarding not just his performance in the job but how he dealt with people, his communication skills, the friends and relationships he appeared to have or be forming, as well as other more off-beat aspects of his character and actions such as where he went for lunch, who he called on the phone during working hours, his internet browser history and how others viewed him. Evie agreed to do so without ever questioning me why I wanted such information. This was just as well, because by now a new plan was beginning to form in my mind.
I needed a face: someone I could put in overall charge of my fledging empire, as it were, and let get on with it, but it had to be the right person. It couldn’t just be anyone I knew or even trusted. Whoever it was had to be exactly the right fit and tick all the boxes without exception. This person, whoever he or she were, would need to be approachable, industrious, well respected, diligent and, above all, smart but not too smart. In a word: Neil.
Now, why him you may wonder. Well, I had seen enough of him at relatively close quarters to know that he was ambitious without being cut-throat, and intelligent without being a genius. I knew I could trust him because he was one of the good guys; he was honest and sensitive to others, and he could adapt to situations. I knew that after living in Indonesia as an expat for as long as he had, he had to have a certain determination about him and the potential to be of use and benefit to me.
In fact, the one consideration I did have to ponder was the very fact that he was not Indonesian. This could be both an advantage and a drawback. The positives of employing an expat in such a position included: he would bring a fresh perspective to the business; he would garner respect by virtue of being a ‘westerner; he would act as an attraction in certain quarters and aspects of the business; and he would add a certain mystique to our busin
esses, too. Against all this I had to weigh up some drawbacks too. For a start, a bule could sometimes be taken advantage of due to naivety or be seen as an easy mark to tap up for money or a sob story. I didn’t have many worries regarding Neil, though. I trusted him well enough, and according to Evie, he was doing just fine with man-management of staff and dealing with customers at EPLC.
No, the only real concerns I had regarding Neil related to his personal life.
I wasn’t totally aware of what was going on between he and his wife, Yossy, but I felt something was up. He had informed me that Yossy was pregnant with their second child but according to my rudimentary grasp of mathematics, the months didn’t add up and I didn’t see how she could have conceived his child in the time span being talked about. That in itself was none of my business, but I had to be sure that he wouldn’t let this interfere with the business. Of a slightly more pressing concern was the reports I was getting back from Evie that Neil could be a little bit of a flirt and perhaps a bit of a budding ladies man. According to my erstwhile Business Manager, Neil enjoyed a good chat with some of the female staff and the older female students. For example, we had a few Housewife Conversation Classes in the mornings and Neil taught these personally, and from the reports I was hearing Neil employed a ‘cheeky chappie’ persona in these lessons. Nothing necessarily wrong with that of course, and there were even possibilities to turn that into an advantage, but again, precautions and care would need to be taken.
The other consideration to bear in mind, of course, would be the immigration status and work permit situation. As EPLC was sponsoring him, he should not by rights work elsewhere, but as long as we did a bit of tap dancing and I called in a few favours, that too should be no problem.
