Indonesian Political, Business & Finance News

ISEAI: One-Day WFH Policy Could Threaten the Real Sector

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

The Indonesia Strategic and Economic Action Institution (ISEAI) assesses that a work from home (WFH) policy for one day each week could threaten the real economy sector. ISEAI Senior Analyst Ronny P. Sasmita stated that one-day WFH is a “lazy” policy because it merely shifts the energy cost burden to households and stifles the UMKM economy in business areas.

Ronny explained that one-day WFH is a pragmatic solution for fiscal health in the short term. ISEAI notes that by the end of 2025, the national fuel oil (BBM) requirement averages 232,417 kilolitres per day. Meanwhile, reliance on petrol imports reaches 49.64 per cent. “The data above shows that every litre of BBM burned on the roads during office-hour traffic jams is nearly half imported goods paid for with US dollars,” said Ronny in the ISEAI study on Tuesday, 24 March 2026.

Based on ISEAI calculations, assuming one-day WFH could save 20 per cent of daily BBM consumption, the potential savings over one year could reach Rp9.67 trillion. Ronny said this figure is crucial for the government, as the 2026 state budget (APBN) faces pressure from new programmes such as free nutritious meals.

On the other hand, said Ronny, the five full-day work system has shaped a very specific economic ecosystem in Indonesia, particularly in economic growth centres like the Central Business District (CBD). This ecosystem includes public transportation, online motorcycle taxis, UMKM culinary sectors, and support services such as parking and cleaning.

“A one-day WFH policy is a direct threat to the growth of the services and retail trade sectors,” stated Ronny. He said the sectors hardest hit if WFH is implemented would be transportation. For instance, public transport operators like Jakarta MRT heavily rely on high daily passenger numbers on weekdays. Meanwhile, the informal sector like online motorcycle taxis could lose 20 per cent of weekly income from commuter customers.

ISEAI also recommends that the government focus on implementing targeted BBM subsidies so that they are not enjoyed by the upper-middle class. Then, the government is advised to optimise assets like co-working spaces and public transportation, rather than restricting mobility.

Previously, Coordinating Minister for the Economy Airlangga Hartarto said fuel savings are needed due to high oil prices from conflicts in the Middle East. One way to save is by reducing office working hours.

“Efficiency is needed in working hours where flexibility for work from home will be opened,” said Airlangga at the Palace on Thursday, 19 March 2026. Nevertheless, Airlangga stated that the current WFH policy is still being designed by the government. The plan is for the WFH regulation to be issued after the Eid al-Fitr holiday.

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