Vaudine England, Jakarta – Amid loose talk of a constitutional coup, President Abdurrahman Wahid says he will run his Government through a gang of four.

While stressing that he would still be helped by Vice-President Megawati Sukarnoputri, Mr Wahid said yesterday decisions would be made after consultation with four individuals: himself, Ms Megawati and two "co-ordinating ministers".

He also continued to refer to Ms Megawati's new role as "implementing technical daily jobs of cabinet" rather than as any redistribution of power.

"The cabinet will be led by two co-ordinating ministers – one for economy, industry and finance and the other for politics, security and welfare," Mr Wahid said at the Presidential Palace on the eve of his State of the Nation address, which precedes Thursday's Independence Day ceremonies.

Over at the parliament building, an assertive group of younger members of the People's Consultative Assembly (MPR) continue to threaten to pass a decree, or at least a recommendation, that Mr Wahid should hand power to Ms Megawati.

But neither Mr Wahid, nor political analysts, seem to be taking the threat seriously. "Moves in the MPR are really losing steam," said a close observer of the past week's parliamentary procedures. "Last week, [former ruling party] Golkar and [Ms Megawati's party] the PDI-P united to make their point to Mr Wahid about the need for better governance. But Wahid knows a decree won't work and believes he can negotiate his way out of this regardless."

A large part of negotiations are over who will gain which seats in cabinet. Mr Wahid is due to announce a new line-up after the MPR session on August 21.

Local reports describe Ms Megawati as insisting on a return of her lieutenants to prominence, namely putting retired General Wiranto back in charge of security and returning former economics chief Kwik Kian Gie and investment minister Laksamana Sukardi to their former jobs. But firm predictions in the present melee would be unwise.

Mr Wahid described the apparent confrontation in parliament as a positive process, saying parliamentarians' work should be seen in the context of improving the country's system of "checks and balances", in which matters of the executive, judiciary and the legislature are kept separate. "If we look at it in this perspective, we have to thank them," Mr Wahid said.

The embattled President also chose to play down a demonstration on Monday by the Banser civilian militia, attached to the Nahdlatul Ulama organisation which Mr Wahid once chaired. "I regretted there was a demonstration organised to support my position," he smiled. "Of course we understand and I thank them for this. But there is also the danger that members of the MPR would think I organised this. But I knew nothing about it."