Anti-Wahid rally may start new Indonesia unrest

Thousands of students have rallied outside the Indonesian state palace in Jakarta today and demanded President Abdurrahman Wahid…

Thousands of students have rallied outside the Indonesian state palace in Jakarta today and demanded President Abdurrahman Wahid's resignation.

The protest caused jittery financial markets to plunge amid fears of a new round of unrest.

Brokers were alarmed by the protests and the value of the currency and stocks dropped dramatically in morning trading to hit their lowest levels in more than two years.

The central bank admitted it could do little to bolster the rupiah - already been battered by deteriorating relations with the International Monetary Fund.

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Adding to the anxiety was a warning from the government's security minister Indonesia could fall apart if its security and political problems were not fixed quickly.

There was no immediate comment from President Wahid. He has steadfastly maintained that he will stay in office.

More than 10,000 demonstrators gathered in front of his white-columned residence. Thousands more rallied at campuses across the capital and staged street marches.

Scores of riot police and soldiers guarded the palace and kept the students apart from a small group of the president's supporters.

Organisers of today's protests had originally called for a national strike. But the capital was quiet and many offices and shops were open as usual.

PA