Confessions of an Economic Hit Man

In addition to learning about my new career, I also spent time reading books about Indonesia. “The more you know about a country before you get there, the easier your job will be,” Claudine had advised. I took her words to heart.

When Columbus set sail in 1492, he was trying to reach Indonesia, known at the time as the Spice Islands. Throughout the colonial era, it was considered a treasure worth far more than the Americas. Java, with its rich fabrics, fabled spices, and opulent kingdoms, was both the crown jewel and the scene of violent clashes between Spanish, Dutch, Portuguese, and British adventurers. The Netherlands emerged triumphant in 1750, but even though the Dutch controlled Java, it took them more than 150 years to subdue the outer islands.

When the Japanese invaded Indonesia during World War II, Dutch forces offered little resistance. As a result, Indonesians, especially the Javanese, suffered terribly. Following the Japanese surrender, a charismatic leader named Sukarno emerged to declare independence. Four years of fighting finally ended on December 27, 1949, when the Netherlands lowered its flag and returned sovereignty to a people who had known nothing but struggle and domination for more than three centuries. Sukarno became the new republic’s first president.

Ruling Indonesia, however, proved to be a greater challenge than defeating the Dutch. Far from homogeneous, the archipelago of about 17,500 islands was a boiling pot of tribalism, divergent cultures, dozens of languages and dialects, and ethnic groups who nursed centuries-old animosities. Conflicts were frequent and brutal, and Sukarno clamped down. He suspended parliament in 1960 and was named president-for-life in 1963. He formed close alliances with Communist governments around the world, in exchange for military equipment and training. He sent Russian-armed Indonesian troops into neighboring Malaysia in an attempt to spread communism throughout Southeast Asia and win the approval of the world’s Socialist leaders.

Opposition built, and a coup was launched in 1965. Sukarno escaped assassination only through the quick wits of his mistress. Many of his top military officers and his closest associates were less lucky. The events were reminiscent of those in Iran in 1953. In the end, the Communist Party was held responsible—especially those factions aligned with China. In the Army-initiated massacres that followed, an estimated three hundred thousand to five hundred thousand people were killed. The head of the military, General Suharto, took over as president in 1968.¹

By 1971, the United States’ determination to seduce Indonesia away from communism was heightened because the outcome of the Vietnam War was looking very uncertain. President Nixon had begun a series of troop withdrawals in the summer of 1969, and U.S. strategy was taking on a more global perspective. The strategy focused on preventing a domino effect of one country after another falling under Communist rule, and it focused on a couple of countries; Indonesia was the key. MAIN’s electrification project was part of a comprehensive plan to ensure American dominance in Southeast Asia.

The premise of U.S. foreign policy was that Suharto would serve Washington in a manner similar to the shah of Iran. The United States also hoped the nation would serve as a model for other countries in the region. Washington based part of its strategy on the assumption that gains made in Indonesia might have positive repercussions throughout the Islamic world, particularly in the explosive Middle East. And if that were not incentive enough, Indonesia had oil. No one was certain about the magnitude or quality of its reserves, but oil company seismologists were exuberant over the possibilities.

As I pored over the books at the BPL, my excitement grew. I began to imagine the adventures ahead. In working for MAIN, I would be trading the rugged Peace Corps lifestyle for a much more luxurious and glamorous one. My time with Claudine already represented the realization of one of my fantasies; it seemed too good to be true. I felt at least partially vindicated for serving the sentence at that all-boys’ prep school.

Something else was also happening in my life: Ann and I were not getting along. I think she must have sensed that I was leading two lives. I justified it as the logical result of the resentment I felt toward her for forcing us to get married in the first place. Never mind that she had nurtured and supported me through the challenges of our Peace Corps assignment in Ecuador; I still saw her as a continuation of my pattern of giving in to my parents’ whims. Of course, as I look back on it, I’m sure my relationship with Claudine was a major factor. I could not tell Ann about this, but she sensed it. In any case, we decided to move into separate apartments.