MENTAL HEALTH AND ECONOMIC WELL-BEING IN INDONESIA: A LITERATURE REVIEW FROM THE PERSPECTIVE OF CIRCULAR AND CUMULATIVE CAUSATION

Abstract

This study aims to examine the interrelationship between mental health and economic well-being in Indonesia based on analysis: (1) the interconnection of the mental health condition and economic well-being in the Indonesian setting, (2) the key mechanisms through which this relationship plays out in Indonesian society, and (3) how understanding the former can illuminate the latter, hence informing more effective policy interventions. The approach used in this research is qualitative-a narrative literature review. Materials subjected to research are articles published from 2015 to 2024 in major electronic databases such as Google Scholar, ScienceDirect, and JSTOR, and official reports published by Indonesian government agencies and international organizations. The results show a vicious circle created by a cumulative causation where poverty generates additional stress and anxiety, which reduces productivity, hence reducing income and creating a self-perpetuating circle. Some of the mechanisms put forward include cognitive load effects, social stigma, impacts on productivity, and how the COVID-19 pandemic has reinforced these dynamics. It identifies the following critical intervention points: full-scale social protection policy; increased mental health infrastructure via digital solutions; and building resilience among those most vulnerable. These findings hint at an integrated approach, where such linked mental health and economic challenges are pursued together through multisectoral interventions.