OPTIMIZATION OF PUBLIC ECONOMIC POLICIES IN RESPONDING TO SOCIAL AND ECONOMIC INEQUALITY CHALLENGES IN INDONESIA POST COVID-19 PANDEMIC

Abstract

The COVID-19 pandemic caused social and economic disparities in addition to a health crisis. Rising poverty levels, decreased purchasing power, and limitations on socio-economic mobility are some examples of these impacts. Public economic policy is an important tool for the government to restore social balance through resource distribution and the strengthening of fiscal policies. The aim of this study is to examine how effective post-pandemic public economic policies are and to develop optimization methods that can evenly improve societal welfare. The method used in this article is a qualitative approach focused on literature research, national statistical data, and scientific journals. The analysis results indicate that policies such as social assistance programs, incentives for small businesses, and increased public spending have improved economic stability, but they have not been fully effective in addressing structural inequality. Therefore, policy optimization should focus on implementing progressive taxes, improving public spending efficiency, and enhancing transparency and accountability in the fiscal system. It is hoped that this optimization can strengthen socio-economic resilience and generate inclusive and sustainable growth.