Who Will Be Affected by the WFH Rules for Civil Servants and Private Sector

The government’s plan to implement a work-from-home (WFH) policy for civil servants and encourage private sector employees after Eid has drawn responses from business circles. Vice Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Autonomy, Sarman Simanjorang, assessed that the policy could suppress household consumption. “The transportation sector will be pressured due to declining passenger numbers,” Sarman said via text message on Monday, 23 March 2026. In addition to transportation, Sarman stated that the WFH policy would reduce turnover for small and medium enterprises (UMKM) in the food or beverage sector that typically sell snacks in office canteens. Sarman fears that this pressure on household spending could hinder economic growth in the second quarter of 2026. Moreover, the second quarter will lack the momentum to boost public purchasing power as occurred in the first three months of this year. Major religious holidays, such as Chinese New Year to Eid, which drive purchasing power, have already taken place simultaneously in the first quarter of 2026. Therefore, Sarman urged the government to consider mitigation steps for the policy to ensure national economic growth targets are not significantly missed. Sarman noted that not all companies can implement such a work system. Some jobs that are not feasible include service sectors, such as shopping centres or malls, hotels, restaurants, cafes, transportation, healthcare services, banking, vehicle services, and manufacturing. Meanwhile, sectors that can implement WFH are those of an administrative nature that can be done through digital systems. Regarding the WFH policy, Sarman said it is entirely a government initiative. “The business world was not involved in making this policy,” he stated. The government has confirmed that the WFH policy will be implemented after Eid as an energy-saving effort amid rising global oil prices. The WFH policy will only apply for one day per week. Coordinating Minister for the Economy Airlangga Hartarto stated that this policy applies to civil servants (ASN) and is also encouraged for the private sector. “(The WFH rule) will be detailed. But after Eid, we will implement it. For ASN as well as encouragement for the private sector. But not for those working in public service sectors,” Airlangga said when met after Eid prayers in Jakarta on Saturday, 21 March 2026, as quoted from Antara. He added that the government will also coordinate with the Ministry of Manpower and the Ministry of Home Affairs to ensure effective implementation. On the same occasion, Finance Minister Purbaya Yudhi Sadewa revealed that implementing WFH for one day could provide energy efficiency impacts, particularly savings in fuel oil (BBM). “There is a rough calculation, (WFH can save) one-fifth, approximately 20 percent (BBM usage),” said Purbaya. Purbaya explained that the reason for applying the policy only one day is to maintain a balance between work flexibility and productivity. “Otherwise, it would be all holidays. Then no work gets done. With WFH, sometimes there are things that can’t be done well remotely,” he said. Purbaya added that if WFH is applied one day, for example on Friday, it would create a longer weekend sequence, namely Friday–Saturday–Sunday. This is seen as able to encourage household activities while providing a small boost to the tourism sector.