Indonesian Rally Site Cleared

Government troops removed several thousand university students from the national parliament grounds here early today, peacefully ending a five-day protest that led to the resignation of longtime ruler President Suharto.

Red beret marines surrounded the sprawling grounds of the parliament in south Jakarta shortly before midnight, informing the 3,000 to 4,000 persistent student demonstrators still inside that they would be transported to the nearby Catholic University. The well-disciplined soldiers said they were ordered to clear the area so that a special meeting could take place in the parliament Monday.

Only a handful of students resisted. Most mounted a fleet of waiting buses while singing a national song, “Syukur,” giving thanks to God. Others walked to the nearby campus.

As the students left, displaying flags and political banners, the closing ranks of troops lowered their weapons, smiled and waved as several dozen foreign television camera crews filmed the scene. It was clear that the troops had been trained not only to handle the students but also the hordes of foreign reporters.

“These students are our family, our brothers and sisters,” one soldier shouted in English. Earlier in the day, the parliament had been the scene of several emotional clashes and fights between rival factions of students.

After a remarkable 10 days of tension, marked by violence and the fall of Asia’s longest-ruling leader, most of the Indonesian capital edged slowly toward normalcy Friday.

For the first time since the political crisis began May 12 with the shooting deaths of six university students here, many of the city’s small shops and businesses reopened. Chaotic traffic once again clogged the streets. Mosques overflowed with Muslims attending Friday prayers.

The political climate was given a boost Friday morning when President B. J. Habibie--the German-trained engineer who only the day before had moved up from the vice presidency to replace strongman Suharto--announced a new Cabinet that was generally praised by resident diplomats and economists. “Family, cronies and discredited elements are all gone,” said a senior diplomat here. “The new Cabinet looks pretty good.”

In particular, economists praised the choices for the country’s economic team, including the reappointment of Ginandjar Kartasasmita, the respected national development chief.

After the Cabinet announcements, the Indonesian stock market rose 5%, and the national currency, the beleaguered rupiah, improved slightly.

But even as the capital of the world’s fourth most populous country paused to take a breath Friday, Indonesia’s still precarious condition became increasingly apparent. According to some financial experts, when Suharto finally resigned Thursday after more than three decades in power, this nation was only one week away from insolvency.

“Basically, there is no banking system left,” said a foreign economist here. “The riots in Jakarta last week disrupted the food distribution system. Imports are shrinking by the month. Exports are having a difficult time because there is no financing for parts. The economy is on the verge of grinding to a complete halt.”

The official exchange rate put the rupiah at about 11,000 to the U.S. dollar. But the “real” exchange rate--what those seeking dollars would have to pay--was almost twice that amount--between 17,000 and 20,000 rupiah for each dollar.

More than anything else, in fact, it was clear that the collapsing economy was the main catalyst for Suharto’s sudden exit from power. “If the economy had been humming along,” commented the diplomat, “they would have had all sorts of options that they didn’t have with the economy on the brink of collapse.”

The ailing economy and demands from the country’s students for reform essentially forced the political establishment created by Suharto to turn on its master. Emerging as the key figure in the Suharto ouster is the country’s taciturn military chief Gen. Wiranto, 50.

Diplomatic sources say that, once Wiranto concluded that the 76-year-old Suharto needed to go, he arranged for a handful of older Suharto friends and advisors to visit the Indonesian leader and gently give him the bad news.

“Gen. Wiranto deserves a large amount of credit,” said one European economic consultant here. “Because of him, this country can be proud that, so far, they have managed their political transition peacefully, unlike the blood bath of 1965 when Suharto came to power.”

After a 1965 coup d’etat, as many as 500,000 Indonesians, including many ethnic Chinese, died in the violence.

Politically, this country now continues to face great uncertainties. Habibie, the new president, is widely considered to be a transitional figure who faces continuing pressure from students and a revived opposition. “For the first time in over three decades,” commented a diplomat here, “you have real politics in Indonesia.”

At the parliament Friday afternoon, political divisions began to appear in the ranks of demonstrating students. Some students, still energized by their success in pushing Suharto from power, chanted slogans demanding that Habibie also step down. Others, however, argued that Habibie should be given a chance to launch political reforms. The two factions clashed several times Friday afternoon.

Dewi Fortuna Anwar, a political consultant who is also acting as an advisor to the new president, said Habibie is aware that he needs to prove that he is his own man and not just a front for Suharto.

Diplomats and analysts here said they are watching to see if Habibie moves quickly to form an independent committee for political reforms and sets a timetable for elections, both of which were promised by Suharto before he resigned. “These are not times of high expectations,” said one diplomat, “but it is a time for hope.”