One Day Per Week WFH Threatens Retail Turnover Decline in Office Areas

The government’s decision to implement a work-from-home (WFH) policy one day per week for civil servants (ASN) is triggering a domino effect that extends beyond bureaucratic matters. Although intended to enhance energy efficiency and control fuel consumption, this policy sends a negative signal to the retail ecosystem that has long relied on the movement of office workers. The real threat, however, looms over supporting sectors, particularly retail and small and medium enterprises (UMKM) around government office zones. Head of Research at Colliers Indonesia, Ferry Salanto, notes that the impact of this policy will be felt much more quickly in the retail sector than in the office property sector itself. The absence of crowds of employees on WFH days means the loss of potential daily transactions in shopping centres, canteens, and coffee outlets in office areas. “The impact of this policy tends to be more pronounced in other sectors than in commercial offices. In the retail sector, there is potential for a decline in activity on weekdays in areas dominated by government offices,” said Ferry on Wednesday (1/4/2026). Ferry emphasises that the public must distinguish between occupancy rates and utilisation rates. For commercial building owners, the WFH policy for ASN is not a primary market driver but rather a dangerous market signal in the long term. Although buildings remain occupied contractually, suboptimal space usage every day will prompt companies to evaluate their workspace needs. This serves as a “yellow light” for building owners in Jakarta’s Golden Triangle (CBD) area to anticipate potential space contraction (downsizing) by tenants in the future. While the retail sector in office areas struggles, the residential sector gains a fresh boost. The normalisation of WFH strengthens the legitimacy of flexible work patterns, which in turn increases consumer preference for homes with adequate workspace facilities. A government policy initially meant for administrative efficiency is now becoming a catalyst for large-scale space efficiency that could lead to a gradual decline in demand for commercial property. The government is now urged not only to view this policy through the lens of fuel savings but also to anticipate the slowdown in the economic pulse of urban retail, which has long supported daily economic activity in city centres.