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Indonesia launched campaigning on Thursday for parliamentary elections with two big secular parties and a host of smaller Islamic ones competing for votes against a backdrop of possible attacks by militants.
Stocks in the world's most populous Muslim nation eased, with investors cautious on the threat of violence by Islamic radicals or between party supporters, but by midday a huge parade of colourful floats in Jakarta was under way peacefully.
The April 5 vote in Indonesia, a sprawling archipelago of 17,000 islands and 220 million people, will be a test of the popularity of conservative Islamic parties in the wake of bomb attacks by militants linked to Osama bin Laden.
The performance of President Megawati Sukarnoputri's party, and its rivals, will set the scene for her bid to retain the top job in the country's first direct presidential election in July.
Many analysts expect she will ultimately triumph as head of a coalition of secular and moderate Muslim parties. Twenty-four parties are competing for 550 parliament seats.
Megawati's Indonesia Democratic Party-Struggle (PDI-P) and Golkar, the former political vehicle of ex-autocrat Suharto, are close in some polls. Both are secular-nationalist.
The atmosphere in Jakarta and elsewhere was festive on Thursday. In Indonesia's nascent democracy, having a good time often matters more than issues. "I made myself like this because I love PDI-P," shouted 35-year-old street vendor Jamhari, his body painted in the party's colours of black and white, and his hair slicked into two horns in honour of the PDI-P bull logo.
"Nobody is paying me. I love democracy and Megawati loves us all," he said, punching his fist in the air from a truck roof.
Added popular TV commentator Andi Mallarangeng, sweating heavily as he walked beside a float for his tiny Nationhood Democratic Party: "This is real euphoria."
One main question is how well Muslim parties will fare in the wake of bombings in Bali and Jakarta blamed on the Jemaah Islamiah militant group that killed more than 200 people.
Most Indonesian Muslims are moderate and analysts expect the biggest share of votes to go to secular parties. The leading Muslim parties also have a moderate outlook.

Copyright Reuters, 2004

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