Bombay – Indonesian opposition leader Megawati Sukarnoputri said the country could break out into a fresh bout of violence if the government dithered on its plan to hold elections or tried to keep her out of the polls.

"What I am struggling (to achieve) and also my people is that we are trying to have our rights without violence," said Megawati, who political analysts say has a good chance of being elected president. "...many people are trying to create anger, so some violence can happen and this will destroy everything that we built for so many years," she told Reuters in an interview late on Saturday. She is in Bombay to receive an award for outstanding contribution to international understanding given by the Priyadarshni Academy, a social service organisation.

"I have supporters – more than 20 million so you can imagine if the government is still very stubborn and not give us a chance in the general elections," she said. Megawati said her supporters, especially students, would occupy parliament if the government failed to recognise her faction before November 10, 1998, when the MPR, the highest constitutional body, is due to hold a special session to fix a date for elections.

"The next three months will be very critical in Indonesia, especially as we approach the People's Assembly," she said. Megawati could launch a new party but is worried that if she revealed her hand first, Habibie could draft rules that keep her out of the polls.

Habibie has said new laws governing political parties and general elections would be ready in August. The Jakarta Post said this weekend the drafts would be submitted to parliament on Wednesday.

Megawati said she would decide on her course of action after meeting with her supporters on the resort island of Bali next month. "That's where (we will ask members) what next we (should) do. We still have our own party or we go through a new party, especially because we have no standard regulations," she said.

The official wing of the PDI elected its new leader last month at its annual congress which had to be cut short because of clashes with pro-Megawati supporters. Megawati is still fighting a court case trying to prove she was unlawfully ousted as head of PDI, with government collusion.

Megawati said she supported moves to investigate corruption in Indonesia, including the probe against the Suharto family whose wealth is estimated by some to be as much as $40 billion.

Indonesia was going through a very critical phase now because a combination of political and economic problems had enraged people, she said. The near collapse of the country's economy, which had led to massive unemployment and impoverished thousands, was causing severe unrest in her country of 200 million people, she said. "The people have a hunger that is now increasing."