[This appeared in The Age (Melbourne) on 17 November 1998]

In August 1945 the founders of the heroic young republic of Indonesia wrote a parliament into their constitution. They called it the People's House of Representatives. Its even more august super-parliament they called the People's Consultative Assembly. Unlike colonial times, this republic belonged to 'the people'.

Last week parliament house was ringed with barbed wire. Police warned it was electrified. Betraying no trace of irony, the police chief declared the house 'sterile' ahead of the crucial People's Assembly meeting. No people were to disturb the quiet pace of 'gradual reform' adopted when Suharto resigned in May.

Today, gradual reform is in tatters. Throughout the four-day meeting riot police seemed busier than the 1000-odd delegates, most of them Suharto appointees. On the last day of the session twelve people died in demonstrations, and hundreds were injured.

The deaths capped a disastrous public relations week for President Habibie. Newspapers hardly bothered to report the insipid details of the one dozen Assembly decisions. Instead, they hailed the student demonstrators for their determination, and wept for them when they died.

Students play an exalted role in Indonesian political life. Sukarno, himself an anti-colonial student protester, only proclaimed Indonesian independence in 1945 after young people pressed him not to hesitate. In 1966 another student generation in turn toppled a 'corrupt' Sukarno and helped put in place a 'clean' Suharto.

Last May Habibie lauded the students who died protesting against Suharto as 'heroes of reformation'. But on Saturday he ordered the police to interrogate several leading figures who backed the student protesters. Like a true Suharto protege, he accused them of 'rebellion'. Bizarrely, Suharto, from the shadows, blamed him for not engaging the students in dialogue.

Indonesians admire students as 'pure' moral actors, unburdened by political interests. By contrast, the gradual reform Habibie promised in May was fraught with such moral ambiguity that only immense public forbearance could make it work. The economic crisis alone has left forbearance in short supply.

The students, and much of the public, wanted five things from this Assembly session:

If swallowed whole, these five acts would be fatal poison for the elitist, security-driven system Suharto built. The honourable members found the pill too bitter for their taste. They agreed on just one of the five, about elections. Vague references to Suharto and the military in other decrees convinced few. They spent the rest of the time chatting about issues that should have been left to a new government - regional autonomy, a populist economic program. No wonder the public was disappointed.

Like the Assembly, the People's House of Representatives or lower house still consists mostly of Suharto appointees. This week it begins debate on new electoral laws. But with little enthusiasm inside the house for tackling the mind-boggling scale of reform the public demands, and with growing scepticism outside, the prognosis for gradual reform is not good.

So what's next? The worst option, being canvassed in some Indonesian media, is a decisive military move to 'restore stability'. This could mean a state of emergency, or more likely manoeuvring to elevate armed forces commander General Wiranto to vice-president (Habibie has none now) or even president. A new military regime would almost certainly lead to serious loss of life, as well as the loss of all the freedoms that have been won since May this year.

The middle option is to do nothing and hope 'gradual reform' will still pan out. Students will be radicalised, inner city residents will grow used to the smell of teargas, and hopes will implode into more unrest as the country drifts leaderless.

The best option is to look to the four most popular figures in Indonesia today. They are Amien Rais, Megawati Sukarnoputri, Abdurrahman Wahid, and the surprising new star, Sultan Hamengkubuwono of Yogyakarta. On Tuesday students stole the limelight when they brought the four together for a joint statement.

They have their differences. But many believe they have enough in common and, more importantly, enough moral authority, to shepherd the nation out of its present leadership crisis. Their statement on Tuesday was designed to be as moderate as possible. Habibie and Wiranto should now approach them for advice on where to go next.

These four are the nation's de facto leaders. A transitional government under their influence would not at once bring the reform agenda to a happy conclusion. But at least it would allow the people back into their own republic.

Gerry van Klinken, editor, 'Inside Indonesia' magazine.