The IMF policies during the economic crisis worsened the situation, as they focused on rooting out cronyism and opening up the Indonesian economy, rather than dealing with the pressing issues of currency depreciation and short-term private sector debt. The IMF failed to anticipate the crisis, misdiagnosed the patient and prescribed the wrong medicine.

The direct social and political impact of the IMF programs was, however, clear for all to see. The forced elimination of government subsidies, which raised the price of fuel, food, and commodities, resulted in massive demand and riots.