Economist: Civil Servant WFH as Fiscal Spending Consolidation Strategy

At this point, fiscal space becomes significant enough to keep the deficit within the 2.9% corridor without having to raise subsidised fuel (BBM) prices.

CORE economist Yusuf Rendy Manilet said the work-from-home (WFH) policy for civil servants is an effective strategy for fiscal spending consolidation amid global economic pressures.

“This policy remains rational as part of spending consolidation efforts amid severe external pressures,” Yusuf told ANTARA in Jakarta on Friday.

According to Yusuf, combining WFH with reallocation of ministry and agency budgets, B50 implementation, and adjusting the Nutritious Meals Program (MBG) to five school days a week can reduce fiscal pressure.

Yusuf added that this combination of policies is expected to create fiscal space exceeding Rp200 trillion.

“At this point, fiscal space becomes significant enough to maintain the deficit within the 2.9% corridor without raising subsidised fuel (BBM) prices,” he explained.

Yusuf argued that the government must consider three factors to prevent the policy from becoming merely symbolic.

First, WFH success indicators should be based on outcomes and public service quality, not just reduced Pertalite consumption.

“This is crucial as there is a risk of declining service quality in areas with inadequate digital infrastructure,” Yusuf added.

Second, the government must assess the impact on informal sectors such as street vendors in office areas, ride-hailing drivers, and public transport operators who lose economic activity every Friday.

Third, policy evaluations from May to July should employ more granular methodologies, such as comparing ASN office zone fuel consumption with control areas unaffected by WFH.

“With this approach, the government can determine whether reduced consumption stems from changed work patterns or other external factors,” Yusuf said.