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ANALYSIS-Indonesia presidency risks more blood

By Andrew Marshall

JAKARTA, July 23 (Reuters) - Her followers have hung a banner in Jakarta
proclaiming ``Megawati or revolution.''

But chances are rising that populist opposition leader Megawati Sukarnoputri
will be denied Indonesia's presidency, and the risk is tipping toward further
bloodshed, analysts say.

Although she won the country's first free parliamentary election in more than
four decades with over 35 million votes, it is not voters who will elect the
president.

The presidential electoral body comprises just 700 people, in which the
ruling Golkar party of former President Suharto, along with Moslem parties
who distrust Megawati's secular-nationalist agenda, may yet lock her out and
keep Golkar candidate President B.J. Habibie in power.

``Everybody has been focused on how peaceful the elections were,'' said the
head of research at a Jakarta brokerage.

``But they have opened a very dangerous possibility. Habibie could hold on to
the presidency. That means serious trouble.''

The student movement, a driving force in pushing Habibie's mentor Suharto
from power, has been quiet for months. But analysts say if Habibie retains
his caretaker presidency, mass protests are likely and instability will hang
over Indonesia.

``Worst of all is that there will be a taint of illegitimacy over this whole
election,'' the head of research said. ``People will say Habibie lost the
election but won the presidency. It will not be a recipe for stability.''

Megawati's Indonesian Democratic Party-Struggle (PDI-P) won the June poll
with 33.7 percent according to a preliminary tally. Habibie's ruling Golkar
limped home second with 22.4 percent.

To Megawati and her supporters this gives her the clear mandate to be
president in November. But the president is elected by the 500 members of
parliament and 200 appointed officials.

Preliminary estimates suggest the PDI-P will have around 154 parliamentary
seats, almost 200 short of the 351 needed for an outright People's
Consultative Assembly (MPR) majority. Golkar is not far behind with around
120.

The PDI-P signed a loose pact ahead of the election with the Nation Awakening
Party (PKB) of Moslem leader Abdurrahman Wahid and the National Mandate Party
(PAN) of reformist politician Amien Rais. The PKB is seen winning 51 seats,
and PAN 35.

But Megawati cannot rely on their support. Rais says Wahid is the best choice
for president. Wahid, hedging his bets, says that while he backs Megawati, he
would not reject being nominated.

Megawati also has outright enemies, particularly among Moslem parties.
Megawati, daughter of founding President Sukarno, is Moslem but many other
leading party figures are Christian.

The United Development Party (PPP) is highly suspicious of the PDI-P and says
Islam forbids a woman becoming president. The PPP is expected to win 39
seats, and is part of a group of Moslem parties in a vote sharing pact that
could secure 40 more.

Habibie has long cultivated his Moslem credentials in the world's largest
Moslem nation. If Golkar can win the support of Moslem parties, he could be
in the driving seat.

The military, with 38 seats, will be courted by both sides. Analysts expect
it to back whichever group looks like winning.

This leaves the 200 appointed officials. Some will be nominated by regional
parliaments, others by interest groups. Foreign election observers have
warned that their selection could be biased. Indonesians fear their loyalty
could be bought.

Indonesian shares and the rupiah surged in the aftermath of the June
election, with foreign investors confident Indonesia's political transition
would be smooth and bloodless. If this positive scenario fails to emerge,
market gains could evaporate.

``Certainly the way things are going, Habibie could still win it,'' said Sani
Hamid, analyst at Standard & Poor's MMS in Singapore. ``The situation is
still very uncertain and we do not expect much upside for the rupiah because
of this.''

Analysts say it is not too late for Megawati to fight back, but she must end
her sphinx-like post-election silence and reach out to Indonesia's Moslem
community.

``Megawati must maintain the momentum achieved from her better than expected
electoral performance. This can be done by continuing to drum home the
message that the people's view must be respected,'' said Hussin Mutalib,
political science professor at the National University of Singapore.

``But having said that, she needs to quickly modify and moderate her image
and that of her party from being perceived as

an avowedly nationalist and Christian party to one which is prepared to
accommodate a certain amount of Moslemness.''

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Didistribusikan tgl. 23 Jul 1999 jam 09:49:56 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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