One Day of Work from Home per Week Deemed Rational, IESR Provides Notes

The Institute for Essential Services Reform (IESR) views the government’s plan to implement one day of work from home (WFH) per week as a rational response amid pressures on prices and global energy supply risks. The policy is assessed to help reduce commuter travel, curb fuel oil (BBM) consumption in urban areas, and provide space for the government to stabilise supplies and public expectations. However, IESR states that the WFH policy needs to be implemented proportionally. IESR Chief Executive Officer Fabby Tumiwa said the benefits are evident for work commuting segments, but the impact is limited on total national BBM consumption. “Because Indonesia’s energy consumption also comes from logistics activities, goods transport, inter-city travel, and non-office economic activities such as industry. Therefore, WFH must be part of a larger policy package, not the only answer,” Fabby stated in a comment quoted on Thursday (26/3). He explained that in situations of potential prolonged disruptions in the Strait of Hormuz and risks of global energy supply disruptions after the war in Iran ends, policy focus is not sufficient on short-term savings. According to him, Indonesia must strengthen short-term energy resilience. At the same time, Indonesia needs to use this momentum to accelerate the energy transition, reduce dependence on fossil energy, and build a safer, more domestic, and cleaner energy system. “One day of WFH is an appropriate emergency step to hold back BBM demand, and this crisis shows that Indonesia must move faster towards a more efficient, more renewable, and more resilient energy system against imports and other fossil energy whose prices and supplies are highly influenced by geopolitical risks,” Fabby said. IESR describes the implementation of one day of WFH per week as a temporary instrument to suppress commuter mobility and signal national energy savings. “Its implementation should be measured, sector-based, and region-based, with priority on jobs that can truly be carried out remotely without reducing public services and economic productivity,” he said. The government is deemed to need to affirm from the outset that this policy is an urgent tactical step as part of an energy demand management strategy. This should not be a substitute for structural improvements on the supply side, public transportation, and energy efficiency. In addition to the WFH policy, observers emphasise the importance of government spending efficiency, particularly on major programmes. If the WFH policy is re-implemented, clear technical regulations are needed in every regional apparatus. All regional apparatuses are asked to ensure services to the public continue normally during WFH implementation, especially in service units that directly interact with the public. Middle to lower-income groups will be the most affected parties if energy prices rise.