Suharto pledges reform, new elections
JAKARTA, Indonesia (CNN) -- Faced with growing civil unrest and
a loss of confidence in Parliament, Indonesian President Suharto
pledged Tuesday to hold a general election as soon as possible
and said that he would not run as a presidential candidate.
"Let me not stand in the way of the desire of our people,"
he said in a nationally televised speech that emphasized adherence
to the country's constitution.
"Elections will be implemented as soon as possible. ... I
hereby say I am not prepared to be elected as president."
Suharto said he would draft new laws for the elections and stay
on to supervise a reconstituted "reform Cabinet" until
election day.
He did not give a time frame for when the elections would be held,
but stressed he would follow the country's 1945 constitution.
The process could take months.
"If we do not uphold the constitution, the country will be
finished," he said.
Suharto has been Asia's longest serving leader. He has served
six five-year terms unchallenged as head of state and was reappointed
to a seventh term unanimously by a national assembly only last
March. He was to have ended that term in 2003.
"There is no need to worry that I will defend my right to
the presidency," Suharto said. "That is not at all the
case."
Demonstrations planned for Wednesday
A Muslim leader said Tuesday that demonstrations planned for Wednesday
would go forward. Organizers predicted the demonstrations -- on
the anniversary of Indonesia's independence movement -- would
bring as many as 1 million people into the streets of Jakarta
and other cities.
In his speech, Suharto emphasized continuity and urged calm among
the island nation's 150 million people. "Let us all now contemplate
in a profound way the destiny of our nation," he said. "Do
not allow emotions to go out of control."
"Let us not allow our legacy to degenerate into chaos. Let
us honor the legacy of our independence heroes who have given
their lives for the creation of our great nation."
Suharto, 76, has ruled the world's fourth most populous nation
for 32 years. In recent months, Indonesia has been among the nations
hardest hit by the Asian currency crisis. Economic reforms demanded
by the International Monetary Fund, which raised the price of
staples and fuel, sparked student demonstrations that erupted
into broadening riots.
More than 500 people have been reported killed in rioting in Jakarta,
and the official Antara news agency quoted insurance experts as
saying the riots caused more than $1 billion, or 10 trillion rupiah,
in damages in the capital.
"I would like to take this opportunity also to express my
condolences to the people who fell victim to the unrest,"
Suharto said in an unusually candid speech. "May God bless
the relatives they left behind and may they have the strength
to face the future."
Pledges to 'save this country'
Suharto's rule was thrown into the balance Monday when the speaker
of Parliament said lawmakers would demand the president's resignation
for the sake of national unity.
But the all-powerful military, dominated by Suharto loyalists
and former aides, quashed that idea, saying it was unconstitutional.
In his speech Tuesday, Suharto promised to set up a reform committee
"to save this country, to assure national development, our
ideology, our constitution, the unity of this country."
He said the committee would address many of the issues cited by
his critics. "The task is to realize new laws on the general
election, politics, the structure of Parliament, including anti-monopoly,
anti-corruption, et cetera, in line with the wishes of the people,"
he said.
Markets rebound on announcement
Indonesia's financial markets reacted positively to the announcement.
The nation's currency, the rupiah, rebounded from a record low
of about 17,000 to the dollar to 11,500 to the dollar in early
trading.
Jakarta's stock market also shot up, gaining more than 6 percent
just before the midday close. Shares in businesses controlled
by Suharto's family were particularly strong.
Nonetheless, some 200 stockbrokers and other professionals, calling
themselves Solidarity of Professionals for Reform, demonstrated
near the stock exchange after the announcement.
"I'm not optimistic if the reform process is led by President
Suharto because of the fact that he has often corrected his earlier
statements," said Sukarman, an employee of a brokerage firm.
A tank was positioned outside the exchange, and about 50 troops
were posted inside on reports that Suharto supporters were planning
to confront the demonstrators.
Jakarta Bureau Chief Maria Ressa, The Associated Press and Reuters
contributed to this report.
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