Lindsay Murdoch, Jakarta – Indonesian police and armed forces last night fired tear gas and rubber bullets in clashes with thousands of people protesting against President B.J. Habibie after a speech defending his 16-month rule failed to appease opposition parties.

The most violent confrontation occurred when a rampaging crowd burnt buses and motorbikes on a major road leading to the parliament.

Student leaders have vowed to continue protesting until Dr Habibie abandoned his bid for re-election. The street clashes followed the President's make-or-break three-hour speech on Thursday night and underscored fears of deepening unrest if the country's People's Consultative Assembly (MPR) returns him to power next week.

In a wide-ranging accountability speech, Dr Habibie claimed he had put Indonesia on the path to political and economic reform. He took credit for stabilising the country's battered economy and initiating democratic reforms to dismantle the authoritarian system that kept the former president Soeharto in power for 32 years.

But at least three major political parties said yesterday they would reject the speech in a likely vote over the weekend.

Analysts say formal rejection of the speech in the 700-member MPR would amount to a vote of no confidence in Dr Habibie and could end his bid for re-election.

Dr Habibie has refused repeated calls to stand down and appears determined to press ahead with his bid against two other presidential contenders, Ms Megawati Sukarnoputri, whose party won the June parliamentary election, and the conservative Muslim leader, Mr Abdurrahman Wahid.

Ms Megawati said: "Personally ... I see that the President's accountability speech should be rejected." Mr Matori Adbul Djalil, the chairman of Mr Wahid's National Awakening Party, said: "What was presented is the furthest away from reality."

Mr Amien Rais, the MPR Speaker and head of the reformist National Mandate Party, described the speech as full of red marks, likening it to a school report.

But he said credit should be given to Dr Habibie in areas of freedom of expression, the release of political prisoners and the birth of the multi-party system. Newspaper editorials said Dr Habibie should go and urged MPs to take notice of the escalating street protests.

Dr Habibie attempted to justify his controversial handling of East Timor and pleaded for the MPR to ratify the ballot result without setting conditions on the territory's independence.