Megawati Sukarnoputri has lost the Indonesian presidential ballot to Abdurrahman Wahid, a revered and moderate Islam leader. The Indonesian Assembly backed Wahid over Sukarnoputri, the popular daughter of Indonesia's founding president, Sukarno.
Her party was the biggest winner in the June 7 parliamentary elections, but it failed to gain a majority and Megawati was unable to shepherd enough support in the Assembly, comprised of new parliamentarians and government and military appointees.
Almost blind and wracked with health problems, Abdurrahman Wahid is a revered and moderate Islamic leader who has proven to be one of Indonesia's greatest political survivors.
Through shrewd political manoeuvring today, he was voted in as Indonesia's fourth president, heralding a new era of democracy and increasing religion's influence after years of secular, military-backed authoritarianism.
Commonly known by his nickname, Gus Dur, he heads the 30-million-strong Nahdlatul Ulama, which claims to be the world's largest Islamic organisation.
Islam is a potent force in Indonesia. About 90 percent of its 210 million people are Muslim, making it the world's largest Islamic nation.
Wahid, 59, has used his influence as an intellectual and a religious leader to promote sectarian and social tolerance across the sprawling archipelago.
"He presents the sweet face of Islam," said Salim said, a Jakarta political analyst. He is the founder of the National Awakening Party, which ran third in historic parliamentary elections last year. As such, he has been one of the few leaders whose support has been sought by most other political players in the presidential race. Described by supporters as a bridge-builder and kingmaker, some critics accuse him of flip-flopping on policy and allegiances. "He is very unpredictable," said Salim Said, a Jakarta political analyst.
Under the former regime of authoritarian President Suharto, Wahid pushed progressive ideas that won him international respect, including his strong advocacy for cooperation among religious faiths.
He triggered controversy when he visited Israel several years ago and called for greater dialogue among Islamic countries and the Jewish state.
Wahid also has consistently defended Indonesia's Chinese minority – who predominantly are Christians – against attacks by some hardline Muslim groups during times of civil unrest.
Since Suharto's resignation in 1998, Wahid has played a major role in the movement for democratic reform. At first he threw his support behind opposition frontrunner Megawati Sukarnoputri.
However, relations between the two soured a few weeks ago, apparently after she failed to promise concessions to his Muslim interests if she became president.
Throughout, he maintained dialogue with President BJ Habibie and the politically powerful military. He then announced his candidacy and quickly emerged as a strong contender, saying he needed to run to help foster democracy.
When Habibie withdrew from the presidential race early today, Wahid cobbled a formidable alliance among several parties and beat out Megawati, who failed to make deals among rival legislators.
Opponents have questioned his suitability. Some say he should remain outside of politics and would be more useful to the nation as a moral adviser.
Others point to the fact that he has suffered two strokes in recent years and, despite extensive eye surgery in Salt Lake City, Utah, in the United States this year, remains almost blind.