Sydney – Indonesian opposition leader Amien Rais said Monday he could form a coalition government if elected to power but still insisted on major reforms, including a reduced political role for the army. Rais, leader of the National Mandate Party, told a student audience here he was confident President B.J. Habibie would stay in office long enough to call polls. He had not seen the policy platform of fellow opposition figures Megawati Sukarnoputri and Gus Dur but a coalition was possible. "I must have a good attitude and intention to see what they have got to offer," he said. "It will be easy for my party to co-exist with other parties if they have close ideological theories and the same aspirations."

Outlining his vision of Indonesia in the 21st century, he pledged to integrate the country and end division between Moslems and Chinese, eliminating "stupid discrimination laws". "We simply must implement democracy," he said. "More importantly, at a deeper level, we must change for the better our feudal and paternalistic ways."

He would limit the presidency to two terms, outlaw a political process based on nepotism and implement freedom of expression. Monopolies or oligopolies would be eliminated and the banking system reformed, he said, describing a government decision to pump trillions of rupiah into bankrupt banks as "stupid and irrational". A non-discriminatory legal system would be introduced, with a concerted push to break the "legal mafia" which corrupts local, provincial and national courts. "I believe my ideas will be accepted," he said.

He acknowledged that the military was still in power, but under his democratic government the armed forces "must finally return to their villages". "I remind army leaders that they would have to reduce systematically their involvement in parliament. Their main functions would be defence and security like other military in democratic countries."

At the moment, the military does not vote in elections, but is guaranteed a number of seats in parliament and plays a crucial behind-the-scenes role in government. "I don't believe religion can be the basis of the state unless 99.9 percent of the people have the same belief," he said.

On East Timor, a referendum on self-determination would be put in place. "A referendum is the only solution to solve the problem, however I believe a referendum must not be given as a quick fix because there are two conflicting groups in East Timor and we have to ask them to sit down together and then to swear ...that whatever the result of the referendum, they will respect it." He said Indonesia had become an international laughing stock under Suharto, who managed with a "psychology of fear" and acted "like a Japanese emperor", putting his personal interests ahead of the nation's. "Of course Suharto must be blamed for the failure to establish a democracy. He was greedy and the crisis he created will be with us for years unless there is a quick prescription to overcome it." Rais played a key role in Suharto's demise and is close to Habibie but said the current president was a continuation of the old regime. "I would like to tell you that Dr Habibie wants to cover up what happened in May."

Tensions between Indonesia's majority Moslem population and the minority Chinese led to mass rioting which played a major role in the downfall of Suharto. Rais, who was general chairman of Indonesia's second largest Moslem group until he resigned in August, refused to accept any blame, saying it was Suharto who created a divided nation. He called the riots "inhuman, uncivilised and barbaric".