Indonesia Introduces A Four-Day Work Week

Indonesia’s Ministry of State-Owned Enterprises has introduced a four-day work week. Some praise the move for improving work-life balance. Others worry about its impact on productivity and competitiveness.

The ministry launched the policy last month after a successful pilot program in June 2023. The Compressed Work Schedule allows employees to complete 40 hours in four days instead of five. Participation is voluntary.

Deputy Minister Tedi Bharata declined to comment. He cited commitments related to the Danantara sovereign wealth fund.

Some companies have tested a four-day model. At first, employees felt more focused and refreshed. A fintech executive said workers enjoyed more personal time and were better prepared for Monday.

But after six months, issues emerged. Coordination became difficult, especially for client-facing teams working Fridays. Employees struggled to meet deadlines, forcing them to work overtime. The company returned to a five-day week due to workload imbalances.

Not all industries can reduce workdays. Retail businesses need staff present for sales. HR executive Abbie Amelia Goenawi warned that fewer workdays could lower revenue.

Logistics companies also face hurdles. Reno Rafly, vice president at Paxel Indonesia, said daily operations must continue. Paxel instead adopted a hybrid model, letting non-operational teams work remotely four days a week.

Private Company vs Public Company Work Week

Government agencies do not compete in the market. Private firms, however, risk losing customers if rivals maintain longer hours. Abbie said fewer workdays could hurt innovation and weaken competitiveness.

Another issue is coordination. A state-owned enterprise employee argued that some tasks need five full days. He said efficiency matters more than the number of workdays.

A four-day work week has benefits, but its success depends on industry and workplace culture. Business leaders stress the need for further studies. Indonesia must assess the impact on productivity, mental health, and economic growth before wider adoption.

“This system works in some countries, but Indonesia needs more evaluation,” Abbie said. Reno agreed, adding that success in one company doesn’t guarantee success elsewhere.

For now, the policy remains limited to the Ministry of State-Owned Enterprises, with no expansion planned.