Indonesia backs new election law

The 700-member People's Consultative Assembly (MPR), which approved the amendments, had previously appointed the president.

The assembly, which is holding its annual two-week plenary section, passed 14 amendments to the constitution.

Other changes include the abolition of seats reserved for the military.

System abused

Under the new system, Indonesians will be able to choose their leaders directly, in a two-round election.

The pairs of candidates for president and vice-president who get the most votes in the first round will face a run-off for the positions in the next round.

Presidential elections are due in 2004.

Correspondents say the decision is being seen as a major step forward for Indonesia's transition towards democracy.

But it has not been an entirely straightforward path to democratic change.

As recently as last month, President Megawati Sukarnoputri herself questioned whether Indonesians were mature enough to choose their own leaders.

Public pressure

Although officials say she has now withdrawn any objections, she is not the only one to feel unsure.

The most recent surveys show that one in four Indonesians do not believe that the time is right for direct presidential elections. Many fear it could spark violence or instability.

However, public pressure for direct presidential elections has been growing over the years.

The appointment of the president by the assembly was abused during the 32-year reign of President Suharto.

A succession of ballots was rigged, ensuring that he clung onto power.

And the BBC's Patricia Noonan in Jakarta says the system has led to political instability in recent years, with the president and the vice-president coming from different political parties.

Last year, the assembly removed President Abdurrahman Wahid from power and replaced him with his own Vice-President, Megawati.

Sharia rejected

The assembly voted on Saturday to abolish the 38 parliamentary seats which are reserved for Indonesia's military - one of the key reforms demanded by protesters who have been staging rallies during the assembly's session.

"This means that the military and police will be concentrating more on professionalism," said military legislator Rear Admiral Franky Kaihatu.

However, a proposal by two Muslim parties to introduce Islamic - or Sharia - law was, as expected, rejected.

Indonesia is the world's most populous Muslim state.