
Governments Recalibrate Social Safety Nets as Housing and Living Costs Bite
From Jakarta to Tehran and Jerusalem, policymakers are revising eligibility thresholds, expanding subsidies, and demanding monetary easing to shield low-income households.
The most sweeping adjustment is unfolding in Indonesia, where the interior minister and the housing minister are jointly overhauling the definition of low-income citizens to unlock a flagship three-million homes programme. The monthly income ceiling for unmarried applicants will rise from 7 million rupiah to 8.5 million rupiah, a move officials say will widen the net of eligible families. Equally significant, the government is preparing a legal basis to sever the link between housing access and domicile recorded on identity cards, removing a bureaucratic barrier that has long frustrated internal migrants. Viewed from Jakarta, the twin reforms signal a pragmatic recognition that rigid eligibility rules have left too many working households stranded between informal employment and formal thresholds.
Alongside the housing push, Indonesian authorities are deploying complementary instruments. A home-improvement grant scheme in the capital has been extended to renovate dilapidated shop premises owned by low-income traders, with a transparent procurement mechanism that officials claim is already delivering savings to the state budget. In Sumatra, a dedicated task force is accelerating permanent reconstruction after devastating hydrometeorological disasters, drawing on freshly disbursed budgets from multiple ministries. Meanwhile, the interior ministry has issued a circular urging regional governments to facilitate public World Cup screenings, explicitly framing the gatherings as a tool to stimulate local economies through small enterprises and community vendors. Underpinning these efforts, the minister has stressed that the newly launched 2026 economic census will provide the granular data needed to sharpen future interventions.
A similar urgency to ease household burdens is visible in the Middle East. In Israel, Finance Minister Bezalel Smotrich issued a sharp public demand for the central bank governor to cut interest rates “sharply and immediately,” arguing that faster action would have already reduced mortgage and loan costs for households and businesses. His call came on the morning of a favourable inflation print, which he seized upon as proof that the Bank of Israel has been too slow to act. The intervention, unusual in its directness, reflects mounting political pressure to offset the squeeze on mortgage-holders in a high-cost housing market.
Iran, meanwhile, is recalibrating its electronic food coupon system. The government intends to return to a decile-based targeting model, prioritising the bottom six income groups, and the economy minister has promised to present a final proposal for increased subsidy amounts within a fortnight. The shift away from cruder distribution methods—such as using the last digit of national ID numbers—marks an attempt to concentrate scarce fiscal resources on the most vulnerable as purchasing power erodes.
Taken together, these disparate moves illustrate a broader pattern: governments across geographies are resorting to finer eligibility calibrations, direct subsidies, and blunt monetary advocacy to contain the political fallout from cost-of-living strains. Analysts in London note that while the tools differ—regulatory tweaks in Southeast Asia, interest-rate brinkmanship in the Levant, and targeted cash-like transfers in the Islamic Republic—the underlying impulse is the same. The question now is whether these mid-course corrections can outpace the erosion of real incomes, or whether they merely buy time before more structural reforms become unavoidable.
How the same story is told elsewhere.
2 editorial groups · 1 languages
The Indonesian government is recalibrating social safety nets by broadening access to housing programs. The low-income threshold is being raised and residency barriers removed so that more citizens can benefit from the three-million homes plan. The move is framed as a pragmatic adjustment to make welfare more inclusive amid economic strain.
Israel's finance minister is publicly pressing the central bank to cut interest rates sharply and without delay, arguing that positive inflation data leaves no room for excuses. The demand conveys urgency and frustration with monetary policy, framing the delay as a mistake that deepens economic pressure on households.
Related articles
US-Iran Memorandum to Be Signed at Bürgenstock Resort on Friday
5 languages · 12 outlets
Economy & MarketsPrivate $300bn fund dangled as incentive for final US-Iran accord
7 languages · 8 outlets
SportNorway’s Golden Generation Meets Iraq’s Grit in World Cup Return After Decades Away
5 languages · 10 outlets