Major events during IMF program:

Major events during IMF program:

1. October 1997: The government invites the International
Monetary Fund (IMF) to help it cushion the economic impacts of
the massive depreciation of the rupiah.

2. November 1997: The government closes down 16 troubled banks as
part of the IMF's recipe to help cure the country's ailing
economy. The move leads to massive runs on other banks as people
rush to cash in their savings and deposits.

3. March 1998: The government increases fuel prices after
reducing the fuel subsidy, which fuels public anger.

4. MAY 1998: President Soeharto steps down after 32 years in
power, as security and the political uncertainty intensifies
following the country's bloodiest riot. Vice president BJ Habibie
takes over the presidency.

5. August 1999: Disclosure of the Bank Bali scandal, which ruins
the chances of president BJ Habibie being reelected. Some US$70
million had been transferred from the bank to a private company
controlled by a senior ruling Golkar Party official.

6. October 1999: Muslim cleric Abdurrahman "Gus Dur" Wahid is
sworn in as the country's fourth president, replacing outgoing BJ
Habibie.

7. February 2000: The IMF suspends a US$400 million loan
disbursement, which further strains the relationship of the
lending agency with the Gus Dur-led administration.

8. August 2002: Megawati Soekarnoputri replaces Gus Dur as the
president, the fifth in the country.

9. July 2003: The Cabinet decides not to extend the IMF special
program when it expires at the end of this year.