Indonesia Economic Riots Continue Unrest Hits Fourth Straight Day; New Military Chief Steps In

A new military chief took over Monday, stepping into his job on the fourth straight day of rioting sparked by the worst economic crisis in three decades.

Mobs ransacked shops owned by ethnic Chinese in two cities. And a controversial friend of President Suharto emerged as the most likely choice for the nation’s vice presidency.

Anger has been building in recent weeks among the millions of poor Indonesians struggling with rising food prices and unemployment.

After being sworn in as commander of the 465,000-member military, Gen. Wiranto, a former personal aide to Suharto, told reporters that the armed forces stood ready to protect national stability. Thousands of police and soldiers have been patrolling riot-torn communities.

Rioters have trashed and torched stores and houses in more than 20 towns on four islands since Friday. Five people have been killed, including at least two men shot by security officers.

Merchants of Chinese descent dominate Indonesia’s economy. While a fraction are among the nation’s wealthiest tycoons, small-town merchants complain they are being attacked as scapegoats for the worst economic woes in a generation.

On Monday, hundreds of people, including schoolchildren, damaged three Chinese shops in Pagar Alam on the island of Sumatra. In Pengalengan, on the island of Java, 500 people ransacked Chinese stores and threw stones. No injuries were reported in either town.

Wiranto, who like many Indonesians goes by only one name, replaced Gen. Feisal Tanjung, 56. In a widely expected announcement, Tanjung said last week that he would retire because of age.

Meanwhile, police in Jakarta have pledged to crack down on protests in the capital in the run-up to the March presidential vote.

Suharto, 76, has governed Indonesia for 32 years. He is expected to win a seventh five-year term when a 1,000-member assembly votes on the national leadership. The grouping also will choose a vice president.

By Monday, all three officially recognized political parties had named the controversial research and technology minister, Bacharuddin Jusuf Habibie, as their sole candidate for the No. 2 slot.

The politically powerful military, the only major faction in the assembly yet to declare its hand, is expected to support his nomination, even though Habibie is a civilian.

Traditionally, the vice-presidency has been a largely symbolic position. But because of Suharto’s age and concerns about his health, the next vice president could become the leader of the world’s fourth-most populous nation.

Financial markets went into a tailspin when Habibie’s candidacy first emerged last month. Analysts say his taste for high-cost projects runs counter to International Monetary Fund efforts to reform Indonesia’s battered economy. Market reaction to Monday’s announcement was muted.

The German-educated former aerospace engineer has his own Internet site, and model airplanes adorn his office desk.

Habibie, a boyhood friend of Suharto, established a state-owned aircraft industry and once called for earthquake-prone Indonesia to adopt nuclear power.

Also Monday, IMF managing director Michel Camdessus said in Brussels that a plan for a currency board to stabilize the rupiah would be premature.

The IMF is managing an international bailout for Indonesia, which has been mired in economic crisis since its currency began plunging last summer.