The 59-year-old intellectual, popularly known as Gus Dur, secured the support of more than half of the 700 members of the assembly. He defeated Megawati Sukarnoputri, the leader of the opposition Indonesia Democracy Party-Struggle, by 373 votes to 313. There were five abstentions among the 691 votes cast.

"I am here to celebrate our victory and our democracy," Wahid said shortly after his win, as he raised hands triumphantly with Megawati. Wahid said the democratic election of a new President represented a "second independence" for Indonesia. He paid immediate tribute to his defeated rival and said they would go together to meet supporters massed in Jakarta's streets.

The vote became a one-on-one contest between the two candidates after incumbent President B J Habibie and a fourth candidate dropped out of the race.

Wahid succeeds Habibie, whoabandoned his attempt to secure a second term earlier Wednesday after an effective vote of no confidence from the national Assembly. "I announce my withdrawal from the presidential nomination. I was satisfied by my term in office," Habibie told a news conference.

Habibie said he had recommended that the Golkar Party replace him with Akbar Tanjung, the party chairman, as its new presidential candidate. But assembly speaker Amien Rais announced that Habibie's Golkar Party had decided not to put forward any candidates of their own. The assembly refused to accept Habibie's account of his 17-month term.

Habibie came to power in May 1998 after autocratic leader Suharto was forced to step down in the face of a profound economic crisis and a wave of student-led protests in favour of democracy. Suharto had ruled Indonesia with an iron fist for 32 years. Indonesia's only other President was Sukarno, Megawati's father, who led the country to independence from the Netherlands.