Keith B. Richburg, Jakarta – Troops opened fire with rubber bullets, tear gas and water cannon here today to disperse thousands of chanting, flag-waving student demonstrators who were trying to take their demands for political reform to the barricaded gates of the country's parliament building.

Dozens of people were reported injured in the melee, which began when students tried to break through a police cordon. Some students were beaten by policemen wielding bamboo sticks, and some were taken to hospitals after apparently being hit by rubber bullets. A number of policemen also were injured by flying stones in the most serious violence seen here since last May, when widespread disorder ended with the ouster of President Suharto.

As the heavily outnumbered police and security forces battled the students outside, the 1,000 assembled legislators inside the arc-roofed parliament building raced to complete an overhaul of Indonesia's authoritarian, military-dominated political system and to bring to book those responsible for its excesses. A final decree, due Friday, is expected to open an investigation into Suharto's wealth and to lay out an accelerated schedule for elections next year.

But the pace of the delegates' efforts clearly was being dictated by the chaotic events on the rain-soaked streets, with the students – not politicians or soldiers – setting the terms and the timetable for the country's transition to democracy. Since a campus-based democracy movement last spring led to Suharto's overthrow, the students have emerged as a potent political force, unwilling to see their reform agenda hijacked by the remnants of a discredited ruling elite.

One member of the assembly, Dewi Fortuna Anwar, an adviser to President B.J. Habibie, conceded in a television interview that "the demonstrations outside are greatly influencing the mood of assembly members, including members of Golkar [the ruling party]. I think most Golkar members realize that they have to listen to the voice of the students. Otherwise, no matter how peacefully the assembly passes, the decrees will be rejected."

The students aimed their protest at the assembly because its 1,000 delegates consist primarily of former Suharto stalwarts and cronies, a contingent of 75 members of the armed forces and a few new members appointed by Habibie, a longtime Suharto protege with no independent power base. The students question whether these assembly members are fully committed to reform and whether political holdovers can represent Indonesia's new aspirations.

Today's protests were the largest this city has seen since Suharto was forced to step down in May, after more than 30 years in power. More than 20,000 students from various universities are believed to have taken part, and they converged on the parliament grounds from different points around the city, some coming in bus caravans, others on foot, with many waving red and white Indonesian flags and some wearing headbands and blazers in their school colors.

Their ranks were swelled along the way by throngs of supporters, including unemployed youths from the surrounding slums. The huge procession brought downtown traffic to a standstill, and the main toll road to the airport was closed. Businesses and shops shut down and workers were sent home as a fear of looming violence and rumors of fresh rioting swept through the city.

The demonstrations were largely peaceful until the students reached the parliament grounds, where they were met by a phalanx of heavily armed security forces – police on the front lines, soldiers in the rear. As the sea of students surged against the plastic shields of the first police perimeter, the troops responded with tear gas, powerful bursts from a water cannon and volleys of rubber bullets.

Reports here said that the troops were ordered to use only blank cartridges and rubber bullets in their automatic weapons. The military is particularly sensitive about fatalities since the shooting deaths last May of four students at Jakarta's elite Trisakti University triggered nationwide outrage.

It appears that the assembly delegates are set to accede to at least some of the students' demands, with Golkar making an about-face on several key issues.

All assembly factions now say they agree that the decree to be issued Friday should include a statement condemning the corrupt practices of the past and calling for an investigation of the old regime. The factions also seem to agree that the role of the armed forces in parliament should be gradually reduced and eventually eliminated, with only the timing of this remaining in question.

The factions still must decide, though, whether to postpone next year's legislative elections from May – when Habibie repeatedly has promised to hold them – until July, a delay that would be certain to inflame the students. Government officials say such a delay would be purely for technical reasons, but the students are likely to see it as an attempt by Habibie and Golkar to cling to power.