Lindsay Murdoch, Jakarta – In a further sign of the animosity between Vice-President Megawati Sukarnoputri and President Abdurrahman Wahid, Ms Megawati yesterday snubbed a Cabinet meeting she was supposed to chair.

Political observers in Jakarta say that the Government's decision-making process has now virtually collapsed along with the relationship between the two former friends. Mr Wahid has relied on Ms Megawati to chair Cabinet meetings because he cannot see ministers who raise their hands to speak or read Cabinet papers. But Ms Megawati skipped the twice-monthly Cabinet meeting yesterday and instead opened an environment exhibition.

Observers say the list of serious problems facing the country is growing by the day as the political crisis in Jakarta drags on. A special session of the People's Consultative Assembly (MPR), where the crisis will climax, is not scheduled to be held until August 1. The MPR, the highest parliament, has the power to impeach Mr Wahid.

Sources close to Ms Megawati say she remains undecided over whether to accept a compromise offer from Mr Wahid to take control of the Government while he remains a figurehead president with largely ceremonial powers. They say she is deeply worried that violence could erupt on the streets if she refuses to accept the compromise and is elevated to the presidency amid acrimony.

"Mega hasn't got the ability to keep pace with rapidly changing events," a source said. "Various people in her party are telling her different things, trying to lock her into positions they think she should take. She is under enormous pressure."

Ms Megawati, the head of the biggest political party, was upset that MPs did not elect her president in 1999. Relations between her and Mr Wahid have been worsening by the day for several months. Ms Megawati last weekend and on Tuesday snubbed the swearing in of four new ministers Mr Wahid appointed in a surprise Cabinet reshuffle last Friday. Apparently she was miffed that Mr Wahid did not consult her about the appointments.

One of them is a long-time friend, retired army general Agum Gumelar, who was quoted yesterday as saying he opposed Mr Wahid carrying out a threat to impose a state of emergency before dissolving of parliament and calling of snap elections. "I think that with the current situation, it is not appropriate to issue an [emergency] decree," he was quoted as saying. "It would not be my choice."

Many observers in Jakarta think Mr Wahid is bluffing in an attempt to get his political enemies to back away from impeaching him over his leadership style.