Jakarta – A faction from Indonesia's Muslim United Development Party (PPP) announced it was breaking away Sunday to form a new political group.

The PPP-Reform was declared in brief ceremony at an upmarket hotel in South Jakarta with the party's declaration read out by one of the founders, Zainal Maarif.

The PPP, Indonesia's third largest party, is currently chaired by Hamzah Haz who is also the nation's vice president. Haz's term as chairman of PPP ends in 2003.

Popular Muslim preacher Zainuddin MZ, who has been a staunch supporter of the move to set up the new party, was present at the launch. Zainuddin was one of 17 signatories of the new party, The split between the two camps within PPP had been made final following a national party work meeting in October which decided to hold the next party general congress in 2004. Zainuddin's faction maintain that the decision violated the party's constitution and that the congress should be held in 2003, a year before general election year.

Haz's faction maintains that the party needed to consolidate to prepare for the 2004 elections and therefore a party congress, which would result in a new leadership, would weaken it.

The declaration of the new party had earlier been scheduled for January 27 but had been brought for to Sunday without any reason given.