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Can you have multiple party members/multiple enemies?

Yes. I had a three-enemy version running that was built on this system. The Intel Pentium Gold / 4GB ram laptop I was using could barely keep up with the GB Studio project file though, and that was only for the combat system! Never mind actually building a game with it in it, so I abandoned the idea. 

The thing that takes a lot of work are attacks that target all enemies. The way that made sense to me took too much effort to explain how it worked so I decided not to share it at the time, I think about trying to rebuild it now that I have an i7 with 16GBs.

It is totally doable though, and if you figure it out I would love to see how you did it!