Louise Williams, Jakarta – Hundreds of people marched through Jakarta's main business district yesterday protesting against rising prices and unemployment, just a day after the armed forces paraded 25,000 troops in a massive show of force and warned against demonstrations.
About three hundred people picketed the heavily guarded offices of the Central Bank about lunchtime and turned to march to Bulog, the state agency charged with stabilising the prices of basic food items, gathering more supporters as they went. Police lined the streets but took no action. The protesters said they had lost their jobs and were calling on the Government to stabilise prices.
In drought-stricken eastern Indonesia riots raged for a second day and a Jakarta newspaper said one man had been killed and scores of shops, cars and motorcycles destroyed by mobs angered over rising prices and food shortages in the town of Ende, on the island of Flores. Police said rioters attacked more than 21 shops owned by ethnic Chinese, who have become the scapegoats in a string of riots in rural towns because of their dominant position in trading. Twenty ethnic Chinese were reported to have taken shelter in the police station after at least 1,000 people came out onto the streets again yesterday morning hurling rock and sticks at Chinese shops.
The Muslim leader Mr Amien Rais led a debate yesterday at a central Jakarta mosque as scores of troops and police looked on. Mr Rais, who heads the 28-million strong Muhammadiah organisation, has openly challenged President Soeharto for the national leadership but yesterday said he would rethink his strategy of planned mass demonstrations following the show of force in Jakarta.
"I am afraid there will be bloodshed," he said. "For me there are certain political constraints. Since yesterday I have been followed everywhere by police."
Mr Rais conceded that his challenge for the presidencyand a similar bid by the pro-democracy leader Ms Megawati Sukarnoputri would be unlikely to succeed, but said the democracy struggle must continue beyond next month's elections. Mr Rais's apparent backdown leaves the pro-democracy movement with little room to manoeuvre and increases the likelihood of uncoordinated protests and riots in response to the deepening economic crisis. Supporters of Ms Megawati, who has formed a loose alliance with Mr Rais, were due to meet last night to decide whetherto go ahead with plannedstreet rallies despite the military warning.
The rupiah fell for a third day yesterday, breaking back through the 10,000 level against the US dollar as jitters continued over the deep social problems the economic crisis will bring. Wholesalers and traders said prices were due to rise again this week and millions are returning to Jakarta after the annual Muslim holidays to find factory gates locked. In the outer islands, the drought is continuing and eastern Indonesian is facing food shortages as crops and distribution networks fail.