Habibie tries to befriend protesting students

Within hours of becoming the country's third leader since independence, Indonesia's new President, Mr Jusuf (BJ) Habibie, last…

Within hours of becoming the country's third leader since independence, Indonesia's new President, Mr Jusuf (BJ) Habibie, last night reached out to the students who had toppled his predecessor, President Suharto, after four months of demonstrations.

Speaking on national television, the long-time friend and ally of Gen Suharto said the student struggle "has accelerated the process of reform with a fresh wind that is blowing us into the 21st century." He promised "clean government free from inefficiency and corruption and nepotism."

Mr Habibie's conciliatory speech came at the end of an extraordinary day in Indonesian politics, which began at 9 a.m. with the abrupt resignation of Gen Suharto after 32 years in power. Students who had been occupying the national parliament building responded with delirious joy, singing, dancing and embracing soldiers who still patrol the city with tanks after last week's riots which claimed over 500 lives.

However, it quickly became apparent that the new leader of the world's fourth most populous nation would have a difficult task establishing his credibility. He has no political power base and is unpopular with the students, the army and the international financial community, which sees him as a champion of crony capitalism.

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Mr Habibie promised constitutional reform and legislation to end monopolies and corruption, and said he will announce his cabinet this morning, a key action which will determine whether students and opposition figures will suspend their campaign for sweeping political reforms.

He is expected to drop relatives and business associates whom Gen Suharto appointed ministers after he was named to a seventh five-year term in March. Mr Habibie yesterday met the Muslim leader, Dr Amien Rais, an old friend who has emerged as the figurehead leader of the student opposition. Afterwards Dr Rais said he had not been offered a cabinet position but he urged people to give Mr Habibie a chance.

"Even if he offers me a job, I will turn him down," Mr Rais told a news conference. " I am a member of the opposition. But let us give him the chance to prove that he is a good President."

As students debated continuing their four-day occupation of parliament to force Mr Habibie to make way for a reform council pending elections, Dr Rais said: "I share with the students the idea that Habibie may not be a good replacement but I want to be realistic. I want to tell the students to be realistic, too. Demanding that Habibie resign immediately is too much."

He said however that Mr Habibie should regard his position as temporary and his endorsement would depend on the nature of the cabinet.

"If it is still unprofessional and still stinks with nepotism," people would reject him. The new Indonesian President, who has inherited an economy in acute crisis, promised to continue the reforms required by the International Monetary Fund in exchange for a rescue package of $43 billion. The ruling Golkar party also said that President Habibie could leave office before completion of his full term in 2003. The speaker of the house of representatives, Mr Harmoko, who precipitated Mr Suharto's resignation by threatening impeachment, gave his support to Mr Habibie's presidency.

International reaction to Mr Habibie's appointment was lukewarm, with diplomats predicting he would be a transitional figure. President Clinton welcomed the resignation of Gen Suharto and said: "We urge Indonesia's leaders to move forward promptly with a peaceful process that enjoys broad public support."