Indonesia is extending mandatory work-from-home (WFH) measures for a significant portion of its civil service workforce as the government moves to curb fuel consumption amid mounting fears of a global energy crisis triggered by escalating tensions in the Middle East.
The decision comes as the International Energy Agency (IEA) warned that global oil markets could enter a critical “red zone” by mid-2026 if disruptions in the Strait of Hormuz continue during the high-demand summer season.
Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Indonesia’s remote-work policy for civil servants will remain in place for the next two months following a cabinet meeting led by President Prabowo Subianto in Jakarta on May 21, 2026.
“The work-from-home policy will be continued for the next two months,” Airlangga said, adding that the measure forms part of a broader economic response package being prepared alongside Bank Indonesia Governor Perry Warjiyo and Finance Minister Purbaya Yudhi Sadewa.
The government is seeking to reduce domestic fuel demand and shield Southeast Asia’s largest economy from surging global crude prices, which have climbed sharply since conflict-related disruptions intensified around the Strait of Hormuz, a strategic route that normally handles around 20% of global oil and liquefied natural gas shipments.
Speaking at a security forum in London, IEA Executive Director Fatih Birol warned that the continued blockage of the corridor could trigger severe supply shortages by July or August if additional Middle Eastern oil supplies fail to reach global markets.
The IEA has described the current disruption as one of the most severe energy shocks in modern history. Brent crude recently traded above $106 per barrel, while West Texas Intermediate (WTI) crossed the $100 mark amid concerns over tightening global inventories.
Indonesia is also pressuring the private sector to support the energy-saving drive. Minister of Manpower Yassierli urged private companies, state-owned enterprises (BUMN), and regionally owned firms (BUMD) to implement remote working arrangements at least once a week.
“We are pushing for the implementation of work-from-home for workers or laborers for one working day per week, customized to company conditions,” Yassierli said during a press briefing in Jakarta.
The ministry clarified that companies adopting WFH policies would not be allowed to reduce salaries or deduct annual leave balances. However, critical sectors including manufacturing, healthcare, transportation, hospitality, and capital markets will continue operating on-site to maintain economic stability and industrial output.
The move highlights how governments across emerging markets are increasingly turning to workplace flexibility not only as a labor policy tool, but also as a mechanism to manage energy consumption and protect national economies during periods of geopolitical uncertainty.