Indonesia's Habibie running things differently

JAKARTA, Indonesia (CNN) -- A day after promising to hold new elections to break 32 years of autocratic rule in Indonesia, President Bacharuddin Jusuf Habibie showed again on Tuesday how the country will be run more openly in the post-Suharto era. But there were also new signs that the nation's political uncertainty was adding to its deep economic troubles.

Tuesday's developments in Indonesia:

With his wife, Ainun, Cabinet ministers and military leaders in tow, Habibie toured the capital's riot-hit Chinatown district and vowed to build a new Indonesia that was free from racism.

"In Indonesia, we do not recognize racial or religious differences among people. We will not tolerate it (racism) in any form," Habibie said.

The rioting earlier this month, fueled by economic unrest and demands for political change, claimed about 500 lives and led to Habibie replacing President Suharto, who resigned.

Habibie listened intently as merchants who lost everything in the rampage vented their frustrations while thousands of neighborhood residents looked on.

"We need credit. We need help. We need protection," shouted Hermawi Taslim, whose computer shop was destroyed. He briefly shook his fist at the president. Under Suharto, such boldness would have landed Taslim in prison.

The new president told the merchants the government probably couldn't aid them financially. But he felt their pain.

"I came here to meet you and express my sincere sympathy," Habibie said.

At every stop he was cheered and applauded.

A group of prominent pro-reform leaders met with Habibie in the president's office. The 90-minute meeting was a free-for-all, tackling corruption, early elections, freedom for political prisoners and even Habibie's business holdings.

The group included presidential hopeful and vocal Muslim leader Amien Rais and Nurcholish Madjid, a Muslim intellectual.

When an allegation was raised that Habibie's well-connected family owned a vast business empire of 81 companies, Madjid said the president threw down a challenge: "Prove it. You have to show they belong to me."

In another exchange, Habibie pleaded for patience when his visitors urged the release of all political prisoners. Two dissidents -- ex-legislator Sri Bintang Pamungkas and labor leader Muchtar Pakpahan -- walked out of jail early Tuesday and the government vowed to release more.

At a student rally after their release, the two freed dissidents said radical political changes must go hand-in-hand with economic reforms.

Arriving in Jakarta to assess the new government's economic reform program, the International Monetary Fund's director for Asia and Pacific affairs stressed the importance of political stability.

"We have to recognize that the economic measures will only work if there is also political stability," said Hubert Neiss.

A $43 billion IMF rescue package for Indonesia was suspended amid the unrest that led up to Suharto's resignation last week.

In addition, the value of Indonesia's currency, the rupiah, has plummeted while inflation and unemployment have soared in the world's fourth most populous nation.

Indonesia's top economic minister, Ginandjar Kartasasmita, has said Habibie's government is committed to big changes to accommodate IMF demands.

Neiss said he plans to meet Ginandjar on Wednesday and will try to meet Habibie this week before leaving Saturday. He also planned to meet opposition leaders and others to get "as comprehensive an assessment as possible."

Thousands of worried customers continued a run on Indonesia's largest private bank Tuesday, when the central bank was forced to provide it with extra cash to keep it open.

Bank Central Asia (BCA), controlled by a close Suharto associate, was a prime target for mobs when massive riots swept Jakarta two weeks ago.

For the past several days, crowds of worried customers have waited for hours in lines that stretched out into the streets at BCA branches. Their numbers increased Monday following rumors that the bank was insolvent.

"The rumors are untrue. But there are still some customers lining up to withdraw their money," a bank spokesman said.

Correspondent Mike Chinoy and The Associated Press contributed to this report.


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