Overcoming Price Shocks

How can a policy be adaptive, not only to today's shocks, but also to other possible future shocks? The answer is that the government can determine the basket of commodities consumed by poor or near-poor households.

Two years ago, the government of Indonesia dramatically expanded the coverage of social safety net programs to help the poor and middle class affected by the Covid-19 crisis.

These new -- and expanded -- programs such as the Basic Food Card, Village Cash Assistance, Pre-Employment Card and electricity subsidies, provide much-needed assistance to those who have lost their jobs or other income during times more difficult than those faced before.