Police warn they will shoot rioters on sight. At least five people die in January-February rioting. Replaced by US-trained economist Sjahril Sabirin. Soeharto sworn in. He says the nation must tighten belt but offers no specific measures.
Student protests break out across the nation.
Minister heading Indonesia's economic reforms says programme is on track with full backing of Soeharto. May. Three days of riots break out in North Sumatran capital of Medan in which at least six people reported dead. Soeharto dissolves a lucrative clove monopoly body headed by his son, pledging there will be no replacement body to control the clove trade. Mobs attack and damage buildings linked to firms controlled by Soeharto's family and friends. Rupiah dives below 11,500 to the dollar.