However, despite the demands of student and political protesters during the recent unrest, the investigation will not specifically target the wealth of Mr Suharto himself and his family.

Some estimates put the fortune at about $40bn.

The BBC Jakarta correspondent says the inquiry will not be the hard-hitting probe demanded by the opposition.

But our correspondent says the inquiry appears to be an acknowledgement of the public demand for quick action against some of the excesses of the Suharto era.

Critics want money donated

Critics say the Suhartos blatantly used their power and position to dominate the economy and amass billions of dollars.

Amien Rais called for a massive donation

The leading Muslim opposition figure, Amien Rais, has called on Mr Suharto to donate the bulk of his wealth back to the country's economy which is in its worst crisis in decades.

Mr Rais said that Indonesia would not have to beg international agencies to help its economy if it was propped up with Mr Suharto's money.

Mr Rais has suggested that the former leader could avoid punitive measures by handing over 95% of his assets to the state.

Inquiry 'response to public anger'

Attorney-General Sudjono Atmonegoro said the corruption inquiry had been set up in response to public anger over the conduct of "government officials." He did not specifically name Mr Suharto.

"The investigation is underway," he said. "This investigation is a process that will need time. It cannot be completed in just one or two days."

Mr Sudjono said the inquiry would be carried out on the principle of "presumption of innocence" and would involve many government departments and outside agencies.

As part of the probe, Mr Sudjono said he had received assurances from Suharto family members that they would not leave Indonesia.

While there were no plans to question the former president, the Attorney-General said he might be asked to comment on evidence from others.