Sander Thoenes, Jakarta - General Wiranto, Indonesia's new military commander, has emerged as a new voice of moderation and even a potential alternative to President Suharto.

The general, who was appointed chief of the armed forces last month, and who is expected to be named minister of defence and security today, told thousands of demonstrating students this week that "constructive demands are all right."

"We are always ready for a dialogue," said Gen Wiranto. "Students are the future of our nation. That clean officials be appointed to the cabinet, for instance, is a logical request."

Mr Wiranto's conciliatory remarks were laced with the usual condemnations of demonstrations and "revolutionary reform", but they were a far cry from those of Feisal Tanjung, his predecessor, who tended to dismiss student activists as "neo-communists" and threatened to shoot them.

Gen Wiranto has also been the only senior official to oppose publicly a recent spate of violent attacks on the Chinese minority, while Mr Tanjung and other officials tried to blame Chinese conglomerates and shop owners for the collapse of the currency and rising prices.

If he is appointed minister, he will offer some balance in a series of controversial appointments to the cabinet that give little indication that Mr Suharto is ready for change.

Ryutaro Hashimoto, Japanese prime minister, and a team from the International Monetary Fund are due in Jakarta this weekend to urge Mr Suharto to implement economic reforms. But they may end up meeting Bob Hasan, a business associate of Mr Suharto who has run a plywood cartel targeted by the IMF, in the key post of minister of trade and industry.

Although Mr Suharto has shown in recent weeks that he is still very much in charge, many look at Mr Wiranto as a widely acceptable alternative should a collapse in the economy weaken Mr Suharto's grip on the country. Many Indonesians believe Gen Wiranto, Mr Suharto's former personal aide, is too loyal to ever turn against the president, but they think he might opt at least not to shoot at demonstrators if they took to the streets.

"If one or another faction in the army says 'We support the people', it's enough," said Frans Seda, a former finance minister who watched Mr Suharto push out his predecessor, President Sukarno, by forging an alliance with student activists. "That means they can take to the streets. We need an army that does not take action against demonstrators."

Mr Seda's only fear is that Gen Wiranto's appointment would give Mr Suharto the option to remove him from the post of chief commander without having to sack him. Gen Prabowo Subianto, Mr Suharto's hard-line son-in-law, would be his most likely successor.