Jakarta – Hundreds of Moslems staged an angry demonstration here Friday to counter demands on the resort island of Bali that a minister step down for insulting Hindus.

During the protest by some 500 Moslems from different youth groups at the Al-Azhar mosque here following Friday prayers, the demonstrators waved banners insisting that Indonesia's president must be a Moslem. "President and vice president must be a Moslem", "Syaefuddin, we support you", "Megawati (presidential candidate Megawati Sukarnoputri), what is your religion?" and "Megawati as president is forbidden."

The earlier Bali protests against Food and Horticulture Minister A.M. Syaefuddin followed a statement he made earlier this month in which he implied that a Hindu could never become president of Indonesia. Saefuddin, commenting on his chances of beating popular politician Megawati Sukarnoputri in the race for the presidency next year, had said he was confident of winning because Megawati was a Hindu.

"She (Megawati) is a Hindu. I am a Moslem. Would the Indonesian people really let their president be a Hindu?" Saefuddin said. He was commenting on news pictures of Megawati participating in a Hindu ceremony.

Protests have since been mounting in Bali, where the majority of the population are Hindus, and many are supporters of Megawati, the daughter of the country's founding president Sukarno, who has Balinese ancestry on his mother's side.

"Syaefuddin's statement was not addressed to insult Hindus in Bali but specifically aimed at Megawati herself," the protestors, many of whom had their children with them, said in a statement. "The assumption that Megawati is a Hindu was based on fact that she participated in prayers at Hindu temples," it said, adding that the matter should end shortly after Syaefudding made his public apology.

Balinese took the remarks as insulting and mass demonstrations, some involving more than 10,000 people, have rocked the tourist paradise almost daily calling for Saefuddin to be sacked.

Ministers and an influential Moslem politician on Sunday attempted to pour oil on troubled waters by calling for a dialogue after angry Balinese Hindus threatened to strike if Jakarta did not sack Saefuddin. However, State Secretary Akbar Tanjung has said Habibie has no plan to dismiss Saefuddin.