Indonesian Political, Business & Finance News

`I QUIT'

| Source: JP

`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)

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