| BJ Habibie -  profile of the
            president
 
 
  BJ Habibie: family friend of former President Suharto
 Reports from Jakarta on the
            controversial man who has become Indonesia's new President, BJ Habibie.
 
 The appointment of Bacharuddin Jusuf Habibie as
 Indonesia's Vice President in March was little more than
 a formality. He had the endorsement of the country's
 powerful armed forces and the dominant Golkar party.
 
 At that point, it capped a remarkable rise to power for a
 man who lacks the military background which has been
 the key to success for most top Indonesian officials.
 
 Mr Habibie was born on the island of Sulawesi in 1936.
 In the 1950s his family got to know the current
 President, Suharto, then a military officer posted to
 Sulawesi, who took the aspiring engineer under his
 wing.
 
 "Leapfrog"
 
 Mr Habibie went for further training in Germany, where he
 became a director of a large aerospace company. It was
 there that he thought up, what he called his leapfrog
 theory of development, bypassing low-skill industries and
 going straight to the high-technology stage:
 
 "The basis of any modern economy is in their capability
 of using their renewable human resources. The best
 renewable human resources are those human resources
 which are in a position to contribute to a product which
 uses a mixture of high-tech."
 
              
                |  |  | The theory convinced President Suharto. In the
                  mid-1970s he gave his protege his own government
                  department and unlimited funds to build South East Asia's first aircraft industry.
 
 National airliner is not selling
 
 After starting by
                  manufacturing other
 countries' aircraft under
                  licence, Mr Habibie embarked on his most
 |  ambitious project, the N250 - a wholly Indonesian
            designed and manufactured airliner. Critics say it will never make money and they have not been reassured by
            Mr Habibie's somewhat unorthodox economic justifications for the project: 
 "I have some figures which compare the cost of one kilo
            of airplane compared to one kilo of rice. One kilo of airplane is thirty thousand US dollars and one kilo of rice
            is seven cents and if you want to pay for your kilo of high-tech products with a kilo of rice, I don't think we
            have enough."
 
              
                |  Habibie now has his own website
 |  | Mr Habibie's problem is that his planes have not sold
                  well. Indeed in an ironic twist, he has sometimes accepted rice instead of cash in order to get a sale. The national
                  aircraft industry has been widely condemned as a waste of money and now it
                  has lost its government funding under the terms of the recent IMF aid package.
 
 |                                                                                         Some Indonesians felt he                                                                                       was the worst possible                                                                                       candidate for vice president                                                                    including the
            anti-Suharto campaigner, Mochtar Buchori:                                                                    "He is a big spender. He also practices nepotism now." 
 National achievements
 
 But Mr Habibie does have his admirers inside Indonesia.
 His projects are always presented as national
            achievements to the Indonesian public, and he has courted senior Islamic figures, an astute move in this
            predominantly Muslim country.
 
 Achmad Tirto Sudiro, leading member of the
            Habibie-sponsored Islamic Intellectuals Association: "He
 has now shown that he has the ability to achieve
            something. When he came back to Indonesia, the president asked him, how much time do you need to set
            up a plane factory and he said ten years. He started and was able to produce two to twelve. I am of the opinion
            that he has the vision of how to build this country in the future."
 
              
                |  Habibie when vice president 
                  as  seen by  political cartoonist
 |  | In the past Mr Habibie had always denied he had his
                  eye on the top job: 
 "No, to be frank. I am only
                  interested in the answer to where should I be to give the maximum contribution to my
 society and the human race.
                  But I am sure that until my last minutes of being alive, I will always dedicate myself
 to my society."
 
 |  Under the rules of Indonesia's constitution, the vice
            president takes over in the event of the president dying or leaving office. BJ Habibie is now the country's new
            president. 
 
 
 
              |