PRIME MINISTER COMMENDS SOEHARTO'S DECISION TO RESIGN

Prime Minister Jenny Shipley commended the decision by Indonesian President Soeharto to resign today as a step towards promised political reforms.

"I see President Soeharto's decision to resign as a wise and statesmanlike move which is in the best interests of Indonesia. His Presidency has brought stability and economic progress to Indonesia over the past 30 years.

"As one of the world's longest-serving leaders, he has also played an important role as an international statesman. He helped set the vision for APEC and this will be a lasting legacy for his leadership.

"However, change in political leadership and structures was overdue and it is clear that his continuation in office could have exacerbated the turmoil we have recently witnessed. Indonesia is facing political and economic challenges which have led to social unrest and distressing loss of life in recent weeks.

"The people of Indonesia will now be looking for clear signs that the political reforms promised by President Soeharto earlier this week will proceed in a peaceful and constitutional manner," said Mrs Shipley.

"The New Zealand Government commends the restraint shown in Jakarta yesterday by protesters and security forces and hopes that all parties in Indonesia will act calmly at this time.

"Our Embassy in Jakarta is monitoring developments closely. For now, the Government continues to advise New Zealanders to avoid travel to Indonesia until conditions become more settled," the Prime Minister concluded.