At least five people die in January-February rioting. Suharto fires central bank governor Soedradjad Djiwandono for opposing the currency board proposal. Replaced by U.S.-trained economist Sjahril Sabirin. Suharto sworn in. He says the nation must tighten belt but offers no specific measures.
Student protests break out across the nation.
Suharto announces new Cabinet, which includes his eldest daughter and several political and business associates of the First Family. Bank Indonesia sharply raises key interest rates and government abruptly cancels foreign currency purchase tax, announced days earlier, in line with IMF requests. Despite mounting unrest, Suharto says constitutionally that political reform cannot come before 2003. May. Three days of riots break out in North Sumatran capital of Medan in which at least six people reported dead. Six students are shot and killed during clashes with police in Jakarta, the first students to die in three-months of demonstrations.