The Indonesian government is set to implement a work-from-home (WFH) policy for one day per week after the Lebaran holiday, a move designed as a key part of its broader energy-saving strategy. This initiative aims to mitigate the impact of escalating global energy costs.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, confirmed that the WFH policy will be mandatory for civil servants (ASN) and strongly encouraged for the private sector, with essential public services remaining exempt. “We will detail the WFH implementation. However, it will commence after Lebaran, applying to both ASN and as an appeal for the private sector, excluding those involved in public services,” Airlangga stated.
Airlangga further clarified that this policy will not be an everyday measure but will be strictly limited to one day per week. To ensure optimal implementation across the nation, the government plans to coordinate closely with the Ministry of Manpower and the Ministry of Home Affairs.
This timely policy emerges in direct response to the surge in global energy prices, which has been exacerbated by the ongoing conflict involving the US, Israel, and Iran. The significant oil price hike poses a substantial risk of increasing the burden on energy subsidies, thus necessitating urgent measures to control consumption, particularly of fuel.
Adding to this perspective, Finance Minister Purbaya Yudhi Sadewa underscored the potential of the WFH policy to deliver substantial energy efficiency through a reduction in daily public mobility. “Based on rough calculations, WFH can save approximately 20 percent of fuel consumption,” Purbaya revealed.
He explained that limiting WFH to just one day strikes a crucial balance between achieving energy efficiency and maintaining high work productivity. “If WFH is too frequent, there’s a concern that productivity might decline. Therefore, one day is considered sufficient to maintain work effectiveness,” he elaborated.
Furthermore, designating a specific WFH day, such as a Friday, could potentially create longer weekends. This extended leisure period is anticipated to stimulate household activities and provide a mild boost to the domestic tourism sector, offering an added economic benefit.
The government’s proactive approach aligns with earlier recommendations from President Prabowo Subianto, who had proposed various measures to tackle a potential energy crisis, including the adoption of WFH and restrictions on private vehicle use. “So, in my opinion, if we face a crisis, we study all efforts, right? First, we must reduce consumption, we can reduce consumption,” Prabowo emphasized previously.
Global Energy Agency Proposes WFH and Avoiding Air Travel
On the international stage, similar measures are being championed by the International Energy Agency (IEA). The IEA has put forward a range of fuel-saving efforts, from encouraging WFH to limiting the use of airplanes.
IEA Executive Director Fatih Birol stressed that comprehensive savings are essential and should be undertaken by governments, businesses, and households worldwide. “Today’s report presents various concrete and immediate demand-side steps that can be taken by governments, businesses, and households to protect consumers from the impact of this crisis,” Fatih stated, as quoted by Reuters on Saturday, March 21.
In addition to WFH, the IEA also advises reducing highway speed limits by at least 10 kilometers per hour to further curb fuel consumption. These recommendations are part of a broader global effort to stabilize volatile energy markets.
As a critical measure to mitigate the surge in oil prices, the IEA, in collaboration with its member countries, has agreed to release a significant volume of strategic oil reserves. Fatih highlighted the scale of this international effort: “We have just launched the largest release in history from IEA emergency oil stocks and I continue to communicate with key governments around the world, including major energy producers and consumers, as part of our international energy diplomacy.”
Indeed, on March 11, the IEA reached an agreement to release a record 400 million barrels of oil from strategic reserves, specifically to dampen the rapid increase in oil prices. The United States notably contributed the largest portion of these released supplies, underscoring a united global response to the pressing global energy crisis.