THE POLITICAL-ECONOMY MANAGEMENT: INDONESIA'S NEEDS FOR THE COVID-19 PANDEMIC

Abstract

The Covid-19 outbreak continues to spread rapidly to almost all countries in the world. The authors need to highlight how the policy perspectives are taken by Indonesia at the national scale and international relations to improve the economic and political situation during this pandemic. Referring to this phenomenon, this research provides an in-depth study of the literature review on strategic efforts and steps to address commodity demand in Indonesia. In short, from an economic and political point of view, the dual problems on the supply and demand side make the premise of comparative advantage (which is the foundation of a free-market economy and international trade) into doubt about its validity. The classical premise argues that social welfare will be optimal if the state specializes in producing goods which are. Having the lowest opportunity cost according to the availability of production factors and buying other needs in the international market, it seems only valid if the international trade mechanism is not disrupted. Conversely, in conditions of supply and demand shocks, all countries will try to produce all their needs domestically and limit exporting products abroad as much as possible.