Jakarta – A majority of factions in Indonesia's top assembly have agreed to hold the country's first ever direct presidential election in 2004, although the format is still being debated, local media reported on Monday.

The leading Kompas daily newspaper said factions, as expected, agreed to the measure late on Sunday, marking Indonesia's latest step in its messy transition to democracy after decades of authoritarian rule.

It was unclear if the 700-member People's Consultative Assembly (MPR) had formally ratified the decision among the political factions. The MPR is holding an annual session that finishes later this week.

But Kompas said the dozen factions were undecided over what should happen if no presidential and vice presidential pairing won more than 50 percent of the vote. Some had said, in that event, the MPR itself should make the choice of which team would rule the nation. Others said a second round of voting among the people should take place.

The MPR currently has the power to sack and appoint presidents, and flexed its muscles last July by removing then leader Abdurrahman Wahid for incompetence.A direct presidential poll would be expected to follow soon after a general election for seats in the 500-member parliament.

Those likely to benefit most from a direct presidential election are the leaders of the Indonesian Democratic Party-Struggle (PDI-P), currently headed by President Megawati Sukarnoputri, and the former ruling Golkar party.

Parliament speaker Akbar Tandjung chairs Golkar. The two parties are the biggest in parliament and also have networks across the vast archipelago. The MPR includes the 500 members of parliament and 200 appointed regional representatives.