Japan will support Indonesia's new leadership, but will "keep a careful watch" as Jakarta tries to achieve social stability and economic recovery, Prime Minister Ryutaro Hashimoto said Thursday.
"Japan will closely watch how things develop," the prime minister told reporters one hour after President Suharto announced his resignation, apparently adopting a neutral stance over the resignation and the inauguration of former Vice President Bacharuddin Jusuf Habibie as the new president.
"I think President Suharto has decided (to resign) after taking into account the desires of the Indonesian people, the need to stabilize the society, and many other factors," Hashimoto told reporters in the Diet building.