The early years of the Suharto era saw economic growth and modernization in a country that had only recently gained independence form Dutch colonialists.
The IMF imposed conditionality requirement by increasing taxes and interests rates combined with cutting government spending resulted in most countries recovering by 1999.
Early on the IMF realized their program was not going well and the managing director had used a previously planned visit to gain the attention of President Suharto in raising the interest rates but failed.
[4] A second IMF agreement was drafted to include provisions of a social safety net designed to tackle Suharto's patronage system.
The fourth and final agreement was signed in June 1998 after BJ Habibie stepped up following Suharto's downfall allowing the budget deficit to widen further whilst new funds were pumped into the economy.
President Megawati Sukarnoputri had already raised prices of basic necessities such as fuel, electricity and telephone to meet the IMF program of cutting state subsidies and narrowing the budget deficit.