Megawati moves to form government

Megawati has been meeting security chiefs

Indonesia's new President, Megawati Sukarnoputri, is moving to take control of the presidency, despite the refusal of her impeached predecessor Abdurrahman Wahid to step aside.

Megawati said she would form a cabinet within days, ignoring Mr Wahid's refusal to leave the presidential palace.

Indonesia

World's largest Muslim state and fourth most populous nation

Huge archipelago of 13,000 islands

Racked by separatist and sectarian violence

Hit by severe economic crisis

The streets of the capital, Jakarta, were calm with no sign of a violent challenge to Mr Wahid's impeachment by his supporters.

Now Indonesians are waiting to see how Megawati - the daughter of Indonesia's first president Sukarno - confronts pressing problems of ethnic and religious violence and an economic crisis.

Wahid waved to supporters from the palace steps late on Monday

The BBC South East Asia correspondent says she has, in the past, shown a lack of political judgement and confidence at crucial moments.

A spokesman for Mr Wahid said on Tuesday he remained convinced that legally and rightfully he is still the president but that he knows the political reality of the situation.

Adhie Massardi told the AFP news agency: "He [Mr Wahid] really believes he has been wronged."

But Mr Massardi confirmed the president's family had starting packing.

"That the family is preparing to leave, that's true, but whether Gus Dur is, I don't know," said Mr Massardi, referring to the deposed leader by his popular name.

Mr Wahid has previously said he was prepared to stay in the presidential palace, even if his family left.

Senior government officials are reportedly keen to avoid a confrontation, preferring to try to coax the former leader out of the presidential palace.

Unity call

In her inaugural speech on Monday, Megawati called for national unity.

Let us build our country together... let us erase all the fights among us which have only deepened the sorrow of the people

Megawati Sukarnoputri

On a day of high drama, Megawati was sworn in within minutes of a parliamentary vote to dismiss Mr Wahid from office. The Indonesian Supreme Court rejected a state of emergency imposed by Mr Wahid as illegal and the assembly impeached him after hearings into allegations of corruption and incompetence.

Expected mass demonstrations by Wahid supporters have not materialised.

US President George W Bush praised the change of leadership in Indonesia. He said he was looking forward to working with President Megawati to address the economic and political challenges facing the country.

Wahid timeline

1 Feb: Parliament censures Wahid over alleged corruption

30 Apr: Second censure from parliament

28 May: Corruption charges dropped

30 May: Parliament votes to impeach Wahid for 'incompetence'

20 Jul: Early impeachment session called

23 July: MPs reject Wahid's declaration of state of emergency

The European Commission appealed for restraint by all parties.

Indonesia's neighbours have given a cautious welcome to the new president. Singapore's foreign minister, Shanmugam Jayakumar, said it he hoped it would bring a period of calm during which Indonesia could begin to address its very serious problems.

Financial markets have reacted positively to the news, with both share prices and the currency, the rupiah, rising significantly.

Sporadic violence

Mr Wahid - a nearly blind Muslim cleric - has repeatedly warned that the giant country could break apart if the assembly removed him from office.

He has strong support in East Java, which has seen sporadic violence in recent months. There are reports of some small demonstrations there.

There were two bomb attacks at churches in Jakarta on Sunday, which left 60 injured, but so far there have been no reports of violence or protests since the assembly's impeachment sessions began.

Moves to oust him began last year when he was linked to two corruption scandals, although police and prosecutors cleared him of any wrongdoing.

Megawati leads Indonesia's largest political party, but only controls a third of seats in parliament.