Vaudine England – Whoever is behind the killings and bomb attacks in the country, brought dramatically to the centre of economic life in Jakarta, has succeeded brilliantly – if such was their plan – in weakening President Abdurrahman Wahid.

Failure by the president to stem the violence and balance international demands for reforms against local desires for stability places the long-term tenure of his Government in jeopardy.

Adding to the depression is the growing realisation among Indonesians and foreigners alike of just how intractable the problem of alleged Suharto-inspired violence is. Whereas a year ago many hoped a democratic transition led by a reformist intellectual might help matters, recent events suggest the issues of violence, corruption and lack of law remain deeply threatening to the state of Indonesia.

"The whole situation undermines [Wahid's] legitimacy. It shows the President is not in control," analyst Andi Mallarangeng said. "The situation is showing that it is very difficult for the President. He has to be clear about what to do. He needs to do something to show that the military is under his control."

Contrary to the needed show of strength is the mood conveyed by presidential palace sources. "There is a feeling that it just can't go on," said one insider when asked if there was any palpable sense of crisis at the top. "The cabinet did feel the pressure on the West Timor killings; they are worried about the money."

Mr Wahid plans to go ahead with his September 24 trip to South America – the latest in dozens of visits abroad. Some on his staff worry about Mr Wahid's predilection for dabbling in overseas issues – such as Middle East peace, or the repression of Burma's Aung San Suu Kyi – when faced with trouble at home. "I can't imagine what he can do," said a presidential staffer, when asked if Mr Wahid could regain the initiative and prevent further destabilisation.

More frightening was the claim by one source that Mr Wahid was unaware of the killings of four UN workers in West Timor on September 6 until Secretary-General Kofi Annan opened the Millennium Summit with a two-minute silence for the victims.

"Wahid needs to order the police and the military to do his bidding," Mr Mallarangeng said. "I think he is making too many compromises; he has been too accommodating towards the military. He could sack commanders, he could sack top generals. He has to stop the militias [blamed for the West Timor attack], he has to go after the bombers. But nothing has been done.

For once, he has to catch the perpetrators, and if it's linked to certain groups, so what? He must follow through on that and the people must see that an extra effort is being made."