13-2-2025 (JAKARTA) The Indonesian Ministry of State-Owned Enterprises has ignited a nationwide discussion following its implementation of a four-day working week, with business leaders and industry experts divided over the policy’s broader applicability and economic implications.
The groundbreaking initiative, dubbed the Compressed Work Schedule, was formally introduced last month after a successful pilot programme that commenced in June 2023. The scheme, which maintains the standard 40-hour work requirement, offers ministry employees the option to compress their working hours into four days.
Whilst the ministry’s deputy minister for human resources, technology, and information, Tedi Bharata, was unavailable for comment due to commitments related to the Danantara sovereign wealth fund, various industry leaders have shared their experiences and concerns about the shortened work week model.
A senior executive from an Indonesian fintech startup, speaking on condition of anonymity, revealed the challenges their company faced during a similar trial. “Initially, we witnessed increased productivity and improved employee well-being. However, by the six-month mark, significant operational issues emerged,” the executive disclosed.
The primary challenges included coordination difficulties between departments, particularly when client-facing teams needed to maintain Friday operations. The compression of tasks into four days often resulted in unexpected overtime, effectively undermining the policy’s intended benefits.
The retail sector has expressed particular concerns about the feasibility of such arrangements. “Our industry’s success hinges on physical customer interaction. Reducing operational days directly impacts sales opportunities,” explained Abbie Amelia Goenawi, HR head at a prominent Indonesian retail firm.
Similar sentiments were echoed by Reno Rafly, vice president of people experience at Paxel Indonesia, who highlighted the logistics sector’s unique challenges. “Our delivery services require daily operations. We’ve instead opted for a hybrid model, allowing non-operational teams to work remotely four days weekly with one office day mandatory,” Rafly stated.
A notable distinction has emerged between public and private sector perspectives. Whilst government institutions can implement such policies with relative ease, private enterprises must carefully weigh competitive implications. “Operating fewer days than competitors could risk market share and innovation capacity,” Goenawi cautioned.
The policy’s success appears highly sector-dependent, with technology and creative industries showing more promise for adaptation than manufacturing, healthcare, or public services sectors. A state-owned enterprise executive, speaking anonymously, emphasised that “operational demands in certain industries require 24/7 availability, making implementation particularly challenging.”
As Indonesia continues to evaluate this progressive working model, experts stress the importance of considering the nation’s developmental status. “As a developing economy, we need comprehensive studies to assess our workforce’s readiness for such a significant shift,” Goenawi noted.
The ministry’s trial represents a bold step towards workplace innovation, yet the consensus among business leaders suggests that success requires careful consideration of industry-specific needs, organisational culture, and economic readiness. As one executive concluded, “The four-day work week isn’t a universal solution – its effectiveness depends entirely on context and implementation.”
