Surabaya – Over 1,000 university students demonstrated peacefully here yesterday against soaring prices of basic commodities. "The government has failed to bring down the prices of basic commodities," student leader Muhaji said during the demonstration, the first large-scale protest here since former President Suharto resigned on May 21.

President B. J. Habibie had promised an economic-reform programme but Mr Muhaji said the government had failed and the economic storm had now whipped up a desire for change. "We believe there will be a revolution in a short time. Look at the intensity of the fight between the people and the government. This is because their voices are not heeded," he said.

Government figures released on Monday said month-on-month inflation was running at 6.3 per cent and that food prices rose by 12.2 per cent in August. Social tension has been building in Indonesia as the economic crisis bites ever deeper into the pockets and stomachs of the people, who are caught between the twin demons of soaring inflation and plunging incomes.

Surabaya's student protesters, who gathered near one of the city's major monuments, also carried banners demanding that the armed forces give up their political role in Indonesia and "return to their barracks".