Indonesia reviews one-day work-from-home scheme as fuel prices and global pressures rise

The government of Indonesia is reviewing a proposal to allow employees to work from home one day per week as part of a five-day workweek, a move aimed at improving efficiency and strengthening fiscal resilience amid rising global energy and commodity prices.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government is finalising technical details of the work-from-home (WFH) policy, which could apply not only to civil servants but also be adopted by private sector companies and local governments.

The policy was expected to be implemented after the Eid al-Fitr holiday in 2026, although the exact start date has yet to be confirmed. The government is also preparing preventive measures to address the continued impact of rising fuel and commodity prices, including increasing coal production through adjustments to work plans and budgets.

“With high oil prices, there’s a need for efficiency in working hours, which will allow for flexibility to work from home on one of the five working days,” Hartarto said in a statement to the press on March 23.

The proposed policy comes as the government seeks to maintain the state budget deficit below 3% while responding to global economic pressures linked to energy price volatility and geopolitical tensions.

In Jakarta, Governor Pramono Anung said the provincial administration would fully comply with whatever decision is made by the central government. He noted that the Jakarta government has not yet taken any technical steps because the final policy has not been issued.

“So, the Jakarta Provincial Government will comply with the central government’s decision. We will implement whatever is decided. But because it hasn’t been decided yet, we haven’t taken a stance on it,” he said on March 25.

The policy review comes as several Southeast Asian countries face the impact of rising fuel prices linked to conflict in the Middle East. In the Philippines, President Ferdinand Marcos Jr. signed an executive order declaring a national emergency due to disruptions in global energy supply chains following the Middle East conflict.

Meanwhile, data from the Ministry of Commerce in Vietnam showed diesel prices have risen by more than 100% since late February, highlighting the wider regional impact of energy price shocks.

Analysts say Indonesia’s proposed one-day WFH policy could help reduce commuting costs, fuel consumption, and operational expenses while offering greater workplace flexibility if implemented nationwide.