`I QUIT'

JAKARTA (JP): Bowing to pressure, president Soeharto announced his resignation yesterday and immediately handed power over to vice president B.J. Habibie.

"I quit as president," Soeharto said in a short ceremony broadcast nationwide shortly after 9 a.m. from Merdeka Palace.

The room fell silent as he explained, reading from a prepared text, about his reasons for stepping down from the position he has held for 32 years.

Soeharto, 77 years old, said the country's situation had become such that it was impossible for him to carry out his state duties.

In stepping down, he invoked Article 8 of the 1945 Constitution, and took note of the views of the leaders of the House of Representatives (DPR).

"I hereby declare that I quit as president of the Republic of Indonesia, effective from the time I'm reading this statement today, Thursday, May 21, 1998."

Soeharto disbanded the cabinet which he formed shortly after his reelection for a seventh five-year presidential term in March.

The ceremony was attended, among others, by Habibie, Soeharto's eldest daughter Siti Hardijanti Rukmana, who was also the minister of social services, Minister of Defense and Security/Armed Forces Commander Gen. Wiranto, Chief Justice Sarwata and Lt. Gen. Prabowo Subianto, commander of the Army's Strategic Reserve Command and also Soeharto's son-in-law.

Dozens of local and foreign journalists were present to record the historic event.

After the announcement, Habibie took his oath of office before Chief Justice Sarwata to become Indonesia's third president. Soeharto said that according to the Constitution, Habibie would serve the remainder of the five-year term until 2003.

Earlier, Soeharto met with DPR leaders, including Speaker Harmoko, at Merdeka Palace. The content of the meeting was not disclosed. But Harmoko had asked Soeharto on Monday to resign for the sake of national unity. On Tuesday, Harmoko secured the support of all of the House's factions.

Analysts believe the real turning point came Wednesday night.

Gen. Wiranto went to Soeharto's Jl. Cendana residence to deliver a message on the behalf of the Armed Forces (ABRI) leadership asking the president to resign, informed sources said.

Up until then, ABRI had stood by Soeharto despite mounting calls for his resignation.

The sources said the military's top brass had met earlier Wednesday and decided the situation demanded the president stand down rather than the possibility of an impeachment process.

A group of cabinet ministers, led by coordinating minister for economy, finance and industry Ginandjar Kartasasmita, reportedly tendered their resignations that night, adding pressure for Soeharto to stand down.

Senior statesman Sudharmono, vice president between 1988 and 1993 and once Soeharto's most trusted aide, went to Cendana to advise the president to make the inevitable decision.

Soeharto had previously resisted calls for him to immediately resign. On Saturday, he said he was prepared to step aside, provided it was done in a constitutional manner.

On Tuesday, he offered to step down after holding a general election based on new election laws. But the reform committee which he had proposed to draft the new law never materialized and his proposal was shot down before he even had the chance to name its members.

Soeharto said he had decided to step down to enable the nation to carry out its reform program in an orderly, peaceful and constitutional manner.

"I thank people for their support and assistance to me during my tenure in leading the country. I apologize for my mistakes and shortcomings, and I hope that Indonesia will remain strong," said Soeharto, who looked composed.

Soeharto explained that the oath-taking ceremony could not be held at the DPR building as it should, because thousands of the students had been occupying the compound.

After the ceremony, Soeharto congratulated Habibie, who is 16 years his junior. Habibie kissed the elder statesman's hand.

Gen. Wiranto, in his capacity as ABRI chief, addressed journalists after Soeharto and Habibie made their exit during which he declared the military's support for Soeharto's resignation and Habibie's appointment as president.

Declaring ABRI firmly united, Wiranto appealed to the nation to respect Soeharto's personal wishes, and to maintain calm and prevent unrest and other forms of violence.

"ABRI will protect the safety and dignity of all former presidents, including president Soeharto and his family," he said.

Soeharto's half brother Probosutedjo, in a television interview, denied rumors yesterday that Soeharto's children and grandchildren had fled the country.

Soeharto's limousine had previously carried the license number "Indonesia 1", though when he left in the same car the plate number had been changed to B 2044 AR.

The old plate number was placed on Habibie's official limousine.

"Where is the next media conference to be held?" Soeharto asked his daughter Hardijanti as they walked toward the limo, apparently mistaken that the new President was going to brief journalists.

"Over there Pak," Hardijanti pointed at the State Guest House. (prb/emb/lem)