Jakarta – Some 5,000 workers at Indonesia's state aircraft manufacturer picketed the presidential palace yesterday to demand higher pay and urge the government to stamp out what they called rampant corruption in the company. They said in a statement that the rally was to show support for President Megawati Sukarnoputri "so that she will have no hesitation in cleaning out state companies from the grip of corruption, collusion and nepotism".

They said graft and poor management was rife at the Bandung-based PT Dirgantara Indonesia, previously the Nusantara Aircraft Industry. The company was the brainchild of president Suharto's protege B.J. Habibie, who succeeded him in 1998.

The workers, who also sought wage increases, said corruption and irregularities had caused the company to suffer losses totalling hundreds of millions of dollars. "I have been working for 16 years and my salary has never been raised," a demonstrator named Kusnadi said.