Indonesia's President Suharto has waved aside calls for his resignation, but promised to pursue reform.

In a live television broadcast to the nation in the face of mounting calls for him to step down, the 76-year-old leader said that the question that had to be asked was whether his resignation would make any difference.

The speech followed a meeting the Indonesian leader held with members of the country's Muslim community.

As he held discussions, thousands of students began to flood into the grounds of the parliament to press their demands for the president's resignation.

Troops allowed the students through the gates without hindrance and while the protests has been peaceful so far, student leaders say they will not leave until their demands are met.

The activity both in and outside the Indonesian parliament followed a call on Monday by its speaker Harmoko - previously a staunch ally of the president - for the 76-year-old leader to step down.

Parliament's 500 members were due to decide on Tuesday whether or not to back the demand for President Suharto's resignation.

Role of military unclear
The standoff in Indonesia has been complicated by a statement from Indonesia's military chief, General Wiranto, who was thought to be sympathetic to demands for reform.

He came out in support of the President on Monday, saying that the embattled Suharto should stay in power and guide the implementation of political reforms.

General Wiranto has called for the cancellation of mass demonstrations planned for Wednesday to press demands for change, and warned of the possibility of serious casualties if they go ahead.

500 people have been killed in the violence as hundreds of thousands of students pressed for Asia's longest-serving leader to resign.

Military tanks and heavily armed troops remained posted at key locations throughout the city on Tuesday