Violence erupted when a line of riot police halted a 10-km long march by striking factory workers on Monday, setting off a spate of stone-throwing in Indonesia's biggest protest since the new president eased restrictions on labour.

At least five police and three protesters were hospitalised as a result of violence during the march in Surabaya, about 650 km east of Jakarta.

About 10,000 people were present on Monday, police estimated. However, the Jakarta Post newspaper said about 25,000 took part.

Feeling the effects of Indonesia's worst economic crisis in 30 years, the workers went on strike a week ago to demand higher salaries. The economic crisis triggered student protests and deadly riots last month, forcing the autocratic President Suharto to resign last month after 32 years in power. His successor, President B J Habibie, relaxed Indonesia'stight restrictions on labour unions last week and signed an international labour organisation accord on respect for workers' rights. He has also promised elections and freed some political prisoners jailed by Suharto's regime.

Meanwhile, all 46 members of the provincial legislature of the tourist island of Bali have promised to resign after thousands of protesters accused them of corruption and collusion. As per the news reports, more than 150,000 Indonesians and foreigners fled the country during the six-day period when riots had broken out last month. Many of those who fled were frightened ethnic Chinese who were targeted as scapegoats for the worst economic crisis in 30 years. Almost 1,200 people died in the violence, the worst to hit the capital Jakarta and other cities in decades. The Jakarta Post quoted Director General of Immigration Pranowo as saying 70,837 Indonesians and 81,526 foreigners left between May 14 and May 20. Several multinational companies and foreign governments arranged evacuationcharter flights. Violence erupted after four students were shot dead by security forces at an anti-government rally at Jakarta's Trisakti University on May 12. It, however, stopped after Suharto resigned.