The International Monetary Fund (IMF) for the first time yesterday left open the possibility that its bail-out package to Indonesia could be increased as the post-Suharto political landscape took shape.

On a day when authorities took over Indonesia's largest private bank because of a run on deposits, the release of political prisoners resumed and the powerful military put on a public show of unity. But all eyes were on the mission of IMF Asia-Pacific director, Mr Hubert Neiss, whose recommendations are crucial to when and how the body resumes $41.2 billion (£29.2 billion) in loans.