IMF Imposes Harsh Structural Adjustment on Indonesia

| Importance: 9/10 | Status: confirmed

The IMF provided a $10 billion bailout to Indonesia in November 1997, imposing stringent structural adjustment conditions that demanded banking sector reforms, public spending cuts, and market deregulation. These policies, while intended to stabilize the economy, resulted in significant social upheaval, massive inflation, and ultimately contributed to the fall of the Suharto regime in May 1998.

Key Actors

IMF Suharto Government World Bank McKinsey & Company

Tags

imf structural-adjustment economic-shock-therapy asian-financial-crisis indonesia world-bank financial-capture

Sources (3)

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