John Aglionby, Jakarta – Megawati Sukarnoputri, Indonesia's president, marked 100 days in office yesterday with the threat of national disintegration, unchecked corruption and rapidly declining natural resources top of her agenda.

She is due to present her first progress report to the country's highest legislative body when it begins its annual session tomorrow. But her grim assessment of the state of the nation is not what the people's consultative assembly would have expected when it elected her after ousting Abdurrahman Wahid in July.

Other worrying issues are the stagnating economy, the growing power struggle between the government and parliament that has stalled much-needed reforms and a lack of progress in ending ethnic unrest in several provinces.

The government's failure to implement almost any of its promised reforms – for example, it has not raised a penny of the £4.4bn it promised from its privatisation programme – or work constructively with parliament is slowly strangling the economy.

Confidence in the president's commitment was not helped when she spent two days shopping in Hong Kong en route to the Apec summit in Shanghai.

To be fair to Ms Megawati, there is some good – or rather, not disastrous – news. Fears that many of Indonesia's 175 million Muslims would rise up following the attacks on Afghanistan have proved groundless, although some observers believe her opponents are biding their time. "There will be less political volatility [in the coming months]", said a political analyst, Wimar Witoelar, "because those who disagree with this government are less enthusiastic about overthrowing it, compared to the last government." He believes she is safe because the opposition will wait until the 2004 general and presidential elections.

Two other major incidents, for which Ms Megawati cannot be blamed, have battered Indonesia's image and the economy. The first is the supreme court's decision to acquit the son of the former dictator Suharto, Hutomo "Tommy" Mandala Putra, of a crime he all but admitted, and the second is a scandal in which the speaker of parliament, Akbar Tandjung, allegedly embezzled £2.5 million of state funds. These sagas highlight that justice remains a lottery in Indonesia and that corruption is still a scourge.