B J Habibie

Mobs of Muslim youths set fire to churches and attacked Christians on Sunday in an eruption of ethnic and religious violence that killed 14 people in the capital. Some victims were mutilated and one was paraded in the streets by his killers. Troops desperate to restore order fired shots and volleys of tear gas to break up rock-throwing crowds that officials said had burned four churches and ransacked seven others.

Efforts to resolve Asia's financial crisis must emphasize easing hardships for ordinary people, Asia-Pacific finance ministers said Sunday at the close of talks overshadowed by the turmoil in Indonesia. The ministers welcomed new Indonesian President B.J. Habibie's commitment to pursue reforms but expressed deep concern about the overall situation in the country.

Indonesia's foreign minister on Friday ruled out a prolonged transition period on the road to independence for the rebel territory of East Timor, but he said he hoped that the Timorese would opt for autonomy within Indonesia rather than full independence. Ali Abdullah Alatas, who is attending a meeting of developing countries in the Jamaican resort of Montego Bay, said autonomy was "the most realistic, the most fair, the most viable and the most peaceful solution" for the region.

Indonesia appears to be slipping into chaos, and it is not at all clear that the current government is capable of pulling it out. The government's violent backlash at student protests in Jakarta has spun a web of fighting, looting and burning in other parts of the country. President B.J. Habibie, for whom expectations were not great when he succeeded Suharto last May, has proved that he is merely a purveyor of the old autocratic status quo of his predecessor and mentor.

Political parties ratified the opposition's solid victory in Indonesia's national election Saturday, nearly six weeks after the country's first free balloting in 44 years. With the parties accepting the results of the June 7 election, the stage is set for the formation of parliament and the electoral college, which will select the country's next president.

A U.N. official urged Indonesian security forces Thursday to do more to keep the peace in East Timor ahead of next month's emotion-charged independence referendum. Ian Martin, the U.N. mission chief in East Timor, warned that "a significant improvement in the security situation" was necessary before the vote on the troubled province's future could be held Aug. 21 or 22. In New York, meanwhile, the United Nations opened another round of talks to discuss plans for a U.N.

President Abdurrahman Wahid, in power a month, returned from a controversial foreign trip Friday to the resignation of a top minister and fresh communal violence in one of Indonesia's most bloodied provinces. Wahid has been criticized for spending too much time abroad instead of dealing with the mounting problems that threaten to shatter the country. He returned Friday from a tour of the Middle East and leaves again today for a summit of the Assn. of Southeast Asian Nations in Manila.

Indonesian President Suharto's dramatic departure from office leaves a crucial element of unfinished business. The beleaguered and politically beaten leader yielded power to his vice president and longtime crony, B.J. Habibie. But while the new president pledged to appoint an experienced and professional Cabinet and to root out corruption, he uttered not a word about holding elections. This is not what the students and other opponents of the regime were seeking. They want real change.

Riot police used tear gas and batons to disperse thousands of anti-government demonstrators Friday as harsh criticism mounted of President B. J. Habibie, eroding his chances of retaining his post in a vote next week. About 30 protesters were hospitalized after clashes that left 10 policemen injured and closed the business district of Jakarta, the capital, for hours.

The International Monetary Fund approved Tuesday a $1-billion loan payment to Indonesia under its global rescue package, rewarding Jakarta for tough reforms to rein in its worst economic crisis.