The government of Indonesia is currently reviewing a work-from-home (WFH) policy for one day per five-day workweek.
This initiative aims to strengthen national fiscal resilience amid global dynamics, including rising energy and commodity prices due to the ongoing conflicts in the Middle East.
The Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, explained that the government is maintaining the state budget deficit below 3%. Therefore, the government is finalising the technical aspects of implementing the WFH policy, which applies not only to civil servants but can also be adopted by the private sector and local governments.
The policy’s implementation plan is scheduled to take effect after Eid al-Fitr 2026, although the exact date is still to be determined. Furthermore, the government is preparing preventive measures to address the continuing impact of rising fuel and other commodity prices. One of these measures is increasing coal production volume through adjustments to the work plan and budget.
“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,” said Hartarto, as quoted in the press, on Monday, the 23rd of March.
In response to the aforementioned policy review, Jakarta Governor Pramono Anung stated that his administration will fully comply with the policies decided by the central government. He emphasised that the Jakarta Provincial Government has not yet taken any technical steps because the final decision has not yet 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,” the Jakarta Governor said on Wednesday, the 25th of March.
Several neighbouring countries have experienced the impact of soaring fuel prices due to the outbreak of conflict in the Middle East. On Tuesday (the 24th of March), the Philippine government became the first country to officially declare a national emergency due to disruptions to the global energy supply chain following the conflict in the Middle East, with President Ferdinand Marcos Jr. having signed an executive order that formally declares a state of emergency, activating a national response to restore stable energy supplies as well as mitigate the economic impact of rising fuel prices.
Meanwhile, according to data from the Vietnamese Ministry of Commerce, as of Wednesday (the 25th of March), diesel prices in Vietnam have more than doubled, or approximately 105%, since the 26th of February, which was two days before the United States and Israel launched attacks on Iran.