Canberra – Australian Prime Minister John Howard said Saturday he had faith in Indonesian President B.J. Habibie implementing the reforms necessary to pull his country out of crisis.

"There's a lot of social strain, the living standard of that country has plunged and there are tens of millions of Indonesians living below the poverty line, so it's a potent cocktail for discontent and civil disturbance," Howard told SBS television.

"We had hoped with the new administration that there would be some progress towards a more open society and that has plainly happened," he added, as thousands rampaged in Jakarta and unrest spread across the country following a night of violence in the capital which left at least 11 dead.

"Dr Habibie has gone further than many of his critics suggested. I don't want to jump to conclusions on the basis of what has occurred over the last few days. "Obviously it is disturbing but we are still maintaining a sense of optimism and hope about the future in Indonesia."

He said he did not believe the latest conflict was as serious as the May troubles, which killed more than 1,000 in Jakarta and unseated veteran leader Suharto, but any civil disturbance was worrying and deaths were regrettable.

"Certainly Dr Habibie has surprised a lot of people with what he's done," Howard said. "He's gone further with East Timor than many people suggested and I just hope he keeps the momentum going, but it is a difficult situation."