Devi Asmarani, Jakarta – In her first public statement since her loss in Monday's election became apparent, President Megawati Sukarnoputri yesterday apologised to the country's highest legislative body for her administration's shortcomings.

But in an accountability speech to the National Assembly (MPR) – which convened for a three-day annual session yesterday – Ms Megawati also highlighted her achievements in the past five years.

She did not concede defeat to Mr Susilo Bambang Yudhoyono, whose name was not mentioned in her 1 1/2-hour speech. But in what appeared to be an acknowledgement of her rival's clear lead in the polls, she said a government elected by the people must be 'more responsive'.

Flanked by uniformed military aides, Ms Megawati's apology was crafted in language typical of speeches by Indonesian leaders. "It is undeniable that there is still work to be done, and shortcomings that have to be resolved," the President told the 700-strong MPR. "For those shortcomings and unfinished works, I, together with the Vice-President, offer my apologies to the Assembly and to the beloved people of Indonesia."

In her speech, she underscored the political progress that occurred since a widespread reform movement ended the three-decade-long rule of the Suharto administration in 1998.

She took over from impeached president Abdurrahman Wahid in May 2001.

Ms Megawati said that under her leadership, she had laid down the foundations for political reforms.

"The Republic of Indonesia that we have in 2004 is much different from the Republic of Indonesia in 1998," she said. "The fundamentals of our nationhood and statehood are now fresher and stronger than six years ago. We have left behind a system of government that was centralistic, both at the central or regional level," she said.

The MPR, which in the past elected the President and Vice-President, convened for the last time this year. Under a series of constitutional changes, a new 550-strong Parliament and 128-strong Senate body will be sworn in next month to replace the Assembly.

She commended the smooth running of the three elections this year – the legislative, the first round of the presidential polls and the subsequent run-off. "This is a political achievement for the people of Indonesia," she said.

With about 86 per cent of the vote counted as of yesterday, Mr Bambang had an unassailable lead with 61 per cent of the vote compared to Ms Megawati's 39 per cent. He swept the polls with a promise of firmer leadership and measures to boost a sluggish economy.

Ms Megawati has so far refused to comment on his victory, pending the official completion of the vote tally on October 5.

On another front, Ms Megawati admitted the difficulty she faced in fighting terrorism in Indonesia, where three major blasts occurred in the last two years. "It is not easy to fight terrorism simply by using the existing legal norms," she said.

A new guideline and legal procedure in handling terrorism more effectively is needed to track down and eliminate terror networks, she added.