Budi Djiwandono, the deputy chief of committee overseeing the military law bill at the House of Representatives, made the statement at an event held by the finance regulator after a plunge in markets on Tuesday.

Activists have condemned plans to change a law that would allow the military to have more government positions, a move they say could lead to "abuse" in a country long influenced by its powerful military.

The revision to a military law will be voted on Thursday in a House of Representatives  dominated by President Prabowo Subianto's coalition after the changes were approved by a key committee Tuesday.

The amendment has sparked fears of a return to the era of dictator Suharto, who Prabowo once served and who used military figures to crack down on dissent.

"That's their target, despite strong criticism by the public: strengthening the role of the army in the civilian government," Usman Hamid, executive director of Amnesty International Indonesia, told AFP.

"That will create conflict of interest and abuse of power, including corruption and human rights violations that have often escaped with total impunity."

Military officers can already serve in 10 government agencies including the defence ministry. 

But under the proposed changes, they would be able to serve in 16, according to a draft seen by AFP, which would include the Supreme Court, National Disaster Agency and attorney general's office among others.

The draft also allows for soldiers to hold civilian positions in other government institutions after resigning or retiring from military service.

The Commission for the Disappeared and Victims of Violence -- or Kontras -- rejected the latest amendment to the military bill.

"The discussion of the... bill revision has been rushed, with minimal public participation, and a lack of transparency in the drafting process," it said in a joint statement with Amnesty and the Indonesia Legal Aid Foundation.  

It also claimed activists have faced intimidation for opposing the amendment.

The presidential palace did not respond to an AFP request for comment.

Prabowo has rehabilitated his image despite allegations of rights abuses under Suharto's rule including ordering the abductions of activists. 

Remodelling himself as a grandfatherly figure, Prabowo won over voters last year and took office as president of the world's third-biggest democracy.

According to Kontras, 23 democracy activists were kidnapped between 1997 and 1998, some who were never found.

Prabowo was discharged from the military over the abductions but denied the allegations and was never charged.