Lindsay Murdoch, Jakarta – Indonesia's President Wahid is refusing to drop plans to sack senior generals, declare martial law and disband parliament in moves that have intensified the country's power struggle.

Mr Wahid last week called a meeting of senior military, police and intelligence officers to tell them to be ready to impose a state of emergency ahead of the dissolving of parliament, the Herald has learnt. He ordered those present not to reveal his intentions publicly. Jakarta is now bracing for a possible showdown over Mr Wahid's moves before parliament resumes in 10 days to press ahead with plans to impeach him.

The stand by Mr Wahid, who is increasingly isolated and contemptuous of the politicians plotting his downfall, threatens to plunge the country into turmoil. His position late yesterday appeared untenable, with the military command and the Vice-President, Ms Megawati Sukarnoputri, moving during the weekend to head off his crisis plan. The military appeared set last night to openly defy the orders of Mr Wahid, who is their supreme commander, unless he backs away from the plans.

Amid speculation about a rift within the armed forces over the stand of their commanders, Mr Wahid publicly denied reports that he was about to sack the chief of the army, General Endriartono Sutarto. He snapped at reporters: "No ... there is no plan to replace him. It's just a lie, and you believe that lie."

A presidential spokesman, Mr Adhie Massardi, admitted that Mr Wahid had discussed the idea and had considered imposing a state of emergency, but had decided against it. "The reason why he discussed it was because he had received input from ordinary people who said the [political situation] was not feasible," Mr Massardi said.

It was unclear last night whether the defiance of the military chiefs and members of Mr Wahid's administration would force him to abandon plans for a state of emergency and to instead endure impeachment.

But analysts said that Mr Wahid's plan to disband parliament just days before it is reconvened on May 30 sets him against the main political parties, most of whom abandoned their support of him months ago and want him impeached.

Mr Wahid's actions have also further alienated a group of Muslim politicians who orchestrated his election in 1999 but are now adamant that Ms Megawati must replace him. Ms Megawati cancelled important anniversary meetings with her party at the weekend to hold emergency talks with senior generals and her advisers in Jakarta.

Ministers held an unusual Cabinet meeting at the presidential palace yesterday. Neither Mr Wahid nor Ms Megawati attended. In a televised address to tens of thousands of supporters in the East Java town of Malang, Ms Megawati said she was not ambitious to be president but would follow the wishes of her party to take the job. She rejected calls for a snap election.

Military sources indicated that unless Mr Wahid changed his mind, which he often does, senior commanders would not follow any orders to impose emergency powers and would wait for parliament to solve the impasse.

But since late last week reports have been sweeping Jakarta that Mr Wahid plans to sack generals, including General Sutarto and the military commander, Admiral Widodo.

On Saturday General Sutarto reiterated that the military would not support Mr Wahid's intention to introduce emergency powers and disband parliament. "Our decision not to support the President in issuing the edict is mainly for the sake of the people," he said. "As we are aware, the people constitute this nation, and the government can only accept the people's mandate."

General Sutarto dismissed the possibility of the military taking power, saying: "No ... we are not going to benefit from the current chaotic situation by taking power." If the leaders were in dispute the military would be on the people's side. "If Gus Dur [Mr Wahid's nickname] wants to replace me due to my stance I'll take it as a consequence."

But a group of 255 retired military officers meeting at military headquarters at the weekend backed General Sutarto's stand. "TNI [the military] firmly upholds the Constitution and is ready to defend it," said the group's leader, the former vice-president Mr Try Sutrisno.

Lieutenant-General Ryamizard Ryacudu, chief of the 30,000-strong strategic reserve, the main combat unit, yesterday urged troops to remain loyal to the nation, not to any individual. This appeared to be a swipe at Mr Wahid. The general ruled out a military coup but said the armed forces had detected the presence of "traitors" who had been stirring unrest in return for money.