Jakarta – Indonesia's leading independent trade union has called off all planned demonstrations following appeals from the public and businessmen, its leader said on Thursday.

"Following many requests from the public and entrepreneurs, we have called off all planned demonstrations for the time being," Indonesian Labour Welfare Union (SBSI) head Muchtar Pakpahan told reporters. "We will see what the government's reaction is to our proposals for national reconciliation and work together towards an agenda for political and economic reforms, especially for the small people who are really suffering," he said.

On June 23, Pakpahan threatened to bring thousands of workers to parliament to pressure President B.J. Habibie to hand over power to a transitional government until new elections are held. The following day, hundreds of troops blocked streets leading to SBSI's head office and prevented the union's 200 members who had gathered there from moving to parliament.

Indonesia is basking in new-found political freedom since the resignation of long-ruling and autocratic president Suharto in May. Protests and demonstrations are being held almost daily. Some are purely political demonstrations but most are protests against rising prices and unemployment as the country battles its most crippling economic crisis in decades. Government officials are worried these protests could easily spiral into violence while businesses say output has been badly affected.

[According to a report by the July 2 Suara Pembaruan, Justice Minister Muladi has warned Pakpahan he could be rearrested if he engages in "illegal activities". The paper quoted Muladi as saying "Just look at Pakpahan. After being released, he's been making trouble. He's even threatened to overthrow the Habibie government. That's a very dangerous thing to do" - James Balowski.]