Abstract
On 20 May, Suharto explained he would not step down and hand power to Jusuf Habibie because such a move would not solve the problems of economic and political crisis. Further, such a move could impose upon the Vice President the same pressures for resignation.
Two days later Suharto handed power to Habibie. There is little to suggest his first analysis was not correct.
It would appear Habibie brings with him all the ingredients for a short presidency; a close association with Suharto, the stigma of family business involvement, lack of an independent power base and the distrust of the International Monetary Fund and World Bank in a climate where the confidence of global financial markets is essential.