Since the return to democracy, the constitution has been amended four times, to separate legislative and executive powers, decentralise the government, directly elect presidents and limit leaders to two terms.
Hendrawan Supratikno, a PDI-P lawmaker, said his party rejects the idea of ending direct election of the president, but is in favour of reinstating the Broad Guidelines.
Last week, Indonesia's largest mass Muslim organization Nahdlatul Ulama (NU) suggested the idea of having the MPR elect the president, according to its website.
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Titi Anggraini, executive director of the Association for Elections and Democracy, welcomed Widodo's rejection, saying the proposals had not been explained properly to the public.
"The president should make sure that these coalition parties are in line with his stance," Anggraini said. "This could be a solidity test on Widodo's political attitude."