JAKARTA – As Indonesia faces a potential energy crisis fueled by disruptions to oil shipments in the Strait of Hormuz and rising global prices – now exceeding US$100 a barrel – officials are considering measures to reduce national fuel consumption. A one-day-a-week work from home (WFH) plan is among the ideas being discussed, building on experiences during the COVID-19 pandemic.
Energy Crisis and Potential Solutions
The situation is particularly urgent following the recent Idul Fitri holidays, during which national fuel reserves were likely depleted faster than anticipated, despite government assurances of a 28-day supply based on average consumption rates. More drastic measures, including a potential increase in gasoline prices, may also be necessary.
Beyond WFH, a four-day workweek – already implemented in Pakistan, Sri Lanka, and the Philippines – is being considered as a potential option. This approach could offer more significant savings in fuel consumption, benefiting both employers and employees.
Previous Trials and Considerations
Indonesia’s state-owned enterprises ministry previously ran a pilot program for a four-day workweek, compressing the standard 40-hour workweek into four days. The results of this pilot have not been publicly shared, but could inform future decisions.
Trials in the United States and the United Kingdom have explored a “100-80-100” model – 100 percent pay for 80 percent of the time, with the expectation of maintaining 100 percent productivity. These trials reportedly showed improved employee wellbeing, productivity, and recruitment, as well as reduced carbon footprints and lower overhead costs for companies.
However, compressing the workweek also presents challenges, including increased work intensity and operational difficulties for industries requiring continuous coverage, such as healthcare and emergency services.
Frequently Asked Questions
What is being considered to address the energy crisis?
A one-day-a-week work from home plan and a four-day workweek are being considered, along with the possibility of raising gasoline prices.
Have other countries experimented with a four-day workweek?
Yes, the United States, the United Kingdom, and Australia have run pilot programs, and Pakistan, Sri Lanka, and the Philippines have implemented it nationwide.
What were the reported benefits of the four-day workweek trials?
Reported benefits included improved employee wellbeing, higher productivity, better recruitment and retention, reduced carbon footprints, and lower utility bills for companies.
As Indonesia navigates this evolving situation, will the government prioritize immediate cost-saving measures or explore more comprehensive, long-term solutions to address the energy crisis?
