Work From Home Deemed Effective in Curbing Fuel Consumption, But Insufficient to Maintain Deficit

The work from home (WFH) policy is deemed to have a tangible impact in curbing energy consumption and fiscal burdens, although it is not yet strong enough to keep the budget deficit below the safe limit this year.

Public policy observer from Paramadina University, Wijayanto Samirin, stated that implementing WFH one day per week has the potential to provide significant efficiency in fuel oil (BBM) consumption.

“WFH one day can cut BBM consumption by up to 10 per cent, save imports by Rp100 trillion per year, and reduce the BBM subsidy burden by Rp15 trillion per year,” he said when contacted on Thursday (26/3).

Nevertheless, he assessed that this impact is not yet sufficient to ensure the budget deficit remains below 3 per cent of Gross Domestic Product (GDP).

According to him, WFH implementation must also be designed selectively so as not to disrupt sectors that require physical presence of workers, such as the manufacturing industry, food and beverage sector, and retail.

“WFH must not disrupt sectors that require the physical presence of employees. This must be accommodated in the policy to avoid disruptions to real economic activities,” he explained.

In addition to the WFH policy, he emphasised the importance of government spending efficiency, particularly in major programmes. He assessed that the current efficiency steps taken are still not significant enough to strengthen fiscal space.

Wijayanto cited the Free Nutritious Meals (MBG) programme and the Red and White Village/Urban Ward Cooperative programme as still having greater efficiency potential.

“The Rp40 trillion efficiency from MBG as announced is not adequate. More drastic steps are needed, for example, efficiency up to 30-40 per cent of the total programme costs,” he said.

He warned that without more aggressive efficiency efforts, pressure on the budget deficit could increase and exceed the limit set by the government.

“If not, the deficit could still breach 3 per cent of GDP,” he concluded.