Energy Crisis Prompts Countries to Adopt Emergency Measures: What About Indonesia?

Several countries have decided to adopt emergency measures in response to the war between the United States and Israel against Iran. One such measure is the Philippines’ declaration of a national energy emergency due to disruptions in oil and fuel supplies. What about Indonesia? One policy slated for imminent implementation is work-from-home (WFH). Finance Minister Purbaya Yudhi Sadewa stated that the decision on the WFH policy has been made and will be announced shortly. Purbaya emphasised that although the decision is final, he will not be the one to communicate it to the public. “It has been decided, it will be announced later. It’s not me who will announce it, it will be the Coordinating Minister for the Economy (Airlangga Hartarto),” Purbaya said in Jakarta on Wednesday (26/3/2026). In response to the government’s target that the WFH policy could reduce oil and fuel (BBM) consumption by up to 20 per cent, Purbaya acknowledged calculations estimating a decline in consumption, though not definitively. He stressed that the impact of the WFH policy cannot be viewed from a single perspective. According to him, increased economic activity could instead drive up state revenues. A rise in economic activity would positively affect businesses and ultimately increase tax receipts. “The savings might not be there, because economic activity rises, business grows quickly, consumption increases. However, if taxes also rise in line with that, then I benefit too,” he explained. Furthermore, the State Treasurer emphasised that the government’s approach to assessing policy impacts is comprehensive. Regarding the plan to implement WFH on Fridays as stated by Coordinating Minister for the Economy Airlangga Hartarto, Purbaya views the choice of that day as considering the minimal impact on productivity. “If it’s a day off, the one chosen is the one with the least impact on productivity. Friday has the shortest working hours, so the loss to productivity is considered the smallest,” he added. Nevertheless, he could not yet confirm whether the policy would be mandatory for the private sector. “I don’t know. Clearly, factories won’t participate. Whether private sector is mandatory or not, perhaps it’s an appeal. I don’t know. For government, it’s mandatory,” he concluded.