Lindsay Murdoch, Jakarta – Indonesia's opposition leader, Ms Megawati Sukarnoputri, has struck a secret deal to secure the presidency that would split the Golkar party of the floundering incumbent, Dr B.J. Habibie.

Under the deal Golkar's chairman, Mr Akbar Tandjung, would serve as Ms Megawati's vice-president with a "full mandate to run everything" in return for supporting her presidential bid next week.

A source close to Ms Megawati yesterday confirmed the deal had been struck two weeks ago at a meeting at which more than 75 Golkar MPs promised in signed statements they were prepared to desert Dr Habibie at the last minute.

Ms Megawati's presidency would be largely symbolic, with immense power remaining with Golkar, the party that backed the disgraced former president Soeharto for 32 years.

Golkar this week re-endorsed Dr Habibie as its candidate when the 700-seat People's Consultative Assembly, or MPR, meets next Wednesday to choose the next president.

But party delegates also gave Mr Tandjung or other members of Golkar's board the authority to dump the unpopular Dr Habibie and nominate another candidate if the MPR votes to reject an accountability speech he was due to make last night. The speech will be debated by MPs today and tomorrow.

Ms Megawati's party, which won the June parliamentary election, and the party of the third presidential contender, Mr Abdurrahman Wahid, have already said they expect to reject the speech, the last hurdle in Dr Habibie's faltering re-election bid.

Dr Habibie's credibility has been badly damaged by a banking scandal, East Timor, and failure to prosecute Soeharto over graft during his 32-year rule.

A Jakarta court yesterday also acquitted Soeharto's youngest son, "Tommy" Mandala Putra, of all charges in a corruption trial relating to a land deal.

Dr Habibie's speech was expected to highlight economic achievements during his 512 days as President, including success in boosting the rupiah's exchange rate, bringing down inflation and interest rates, opening rice procurement, passing a banking law and scrapping some monopolies.

Mr Tandjung, 54, is an experienced political operator, having served for 10 years in successive Soeharto cabinets. A recent convert to democratisation and one of the key reformists in Golkar, Mr Tandjung was last week elected to the powerful post of parliamentary speaker.

Analysts say many Golkar MPs might back a Megawati-Tandjung ticket rather than risk losing power altogether. But they add Dr Habibie's ability to attract votes should not be underestimated, as he is believed to have access to millions of dollars to bribe MPs.

Dr Habibie has already nominated as his running mate the head of the armed forces, General Wiranto, who controls a crucial 38 military-appointed seats. General Wiranto would be deeply unhappy about Ms Megawati winning the presidency without a political role for the armed forces leadership.

Yesterday demonstrators demanding Dr Habibie step down clashed with security forces near parliament.