President Suharto resigns
President Suharto has resigned after 32 years in power, faced
with implacable student protests and the loss of international
support.
He made the announcement in a televised address at 9 am local
time (0200 GMT), surrounded by politicians and military leaders.
His vice-president Jusuf Habibie immediately took
the presidential oath of office for the remainder of Suharto's
term, which ends in 2003.
President Suharto had been under escalating domestic and foreign
pressure to step down amid the country's worst political and economic
crisis since he came to power in1966.
"I ask for forgiveness if there were any shortcomings,"
said the president, who looked grim and tired. "May Indonesia
remain victorious."
He said he was standing down in order to ensure proposed reforms
can continue.
Military backs change
Military chief General Wiranto, who spoke on the same broadcast
after Mr Habibie took his oath, said that the Indonesian armed
forces would safeguard the "former leaders of this country
including Mr Suharto."
Wild jubilation immediately greeted the announcement at the parliament
where more than 1,000 students were carrying on a protest to force
President Suharto to quit.
However some student leaders rejected the idea that his deputy
should take over.
One prominent opposition leader, Amien Rais, said he believed
Mr Habibie would be only an interim president, and withheld his
endorsement.
"I have to wait until the new cabinet is formed," said
Mr Rais, who heads one of the
biggest Muslim organisations, claiming 28 million people.
Mr Rais said he would support the new government if it was clearly
made up of "honest people
in touch with community feelings".
It is still not clear if elections promised by Mr Suharto before
his resignation will go ahead. An adviser to Mr
Habibie, Dewi Fortuna Anwar, said this would be unconstitutional
as polls were held on nine months ago.
Faction fighting over succession
Earlier, as rumours of the resignation swirled around Jakarta,
it was not clear who would succeed the long-time leader.
Supporters of Vice-President Jusuf Habibie insisted that he should
take over as specified in the constitution.
But the environment minister said there was a great deal of opposition
to Mr Habibie because he is seen as a close associate of Mr Suharto.
"There is a lot of infighting," he said. The financial
markets reacted with caution to the announcement, with the rupiah
slightly up against the dollar.
"News of his resignation are positive for Indonesia, but
the markets will still probably look for clearer leads,"
said a currency dealer with a European bank in Singapore.
The BBC Jakarta Correspondent says there will be huge relief that
Mr Suharto has agreed to go without further bloodshed.
But with the new president so close to Mr Suharto, he is expected
to head only a transitional government.
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