Indonesia’s Ministry of State-Owned Enterprises adopts a four-day workweek to enhance employee well-being.
In a bold move aimed at improving work-life balance, Indonesia’s Ministry of State-Owned Enterprises has officially implemented a four-day workweek for its employees. This initiative, known as the Compressed Work Schedule, allows eligible staff to complete their 40-hour work requirement over four days, up to twice a month. While the policy seeks to alleviate stress and enhance mental health, it has ignited a debate among business leaders and HR professionals about its potential implications on productivity and economic competitiveness.
The traditional five-day workweek has long been the standard in Indonesia, as in many parts of the world. However, mounting concerns over employee burnout and mental health have prompted organizations to explore alternative work arrangements. The Ministry of State-Owned Enterprises’ decision to trial a four-day workweek in June 2024, followed by its official adoption in January 2025, marks a significant shift in the country’s approach to work culture.
Divergent Perspectives
The introduction of a compressed workweek has elicited mixed reactions from Indonesia’s business community. Proponents argue that the policy could serve as a catalyst for improved employee well-being and productivity. They contend that a reduced workweek allows employees more time to rest and recharge, potentially leading to enhanced focus and efficiency during working hours.
Conversely, skeptics raise concerns about the feasibility of a four-day workweek across various industries. Abbie Amelia Goenawi, Human Resource Head at a leading Indonesian retail company, cautions that reducing workdays could directly impact sales, particularly in sectors that rely heavily on direct customer interaction. “Retail requires employees to be physically present in stores. Fewer workdays mean fewer opportunities for customers to purchase products,” she notes.
Global Insights
Indonesia’s exploration of a four-day workweek is part of a broader global trend. In the United Kingdom, a large pilot study found that four-day workweeks are beneficial for employees’ health, well-being, and job performance. Similarly, companies in Australia that have adopted shorter workweeks report significant success, with increased staff happiness, health, and efficiency.
However, not all experiments have yielded positive results. A fintech startup in Indonesia that previously adopted a four-day workweek observed initial improvements in productivity and employee well-being. Yet, by the sixth month, issues such as coordination challenges between departments and increased workloads for certain teams led the company to revert to a five-day schedule.
Industry-Specific Challenges
The applicability of a four-day workweek varies across industries. In sectors like technology and creative industries, where work can be more flexible, a compressed schedule might be feasible. However, in industries such as manufacturing, energy, healthcare, tourism, and logistics, operational demands often require a continuous presence, making a reduced workweek challenging to implement.
For instance, Reno Rafly, Vice President of People Experience at Paxel Indonesia, a logistics technology company, explains that while the company cannot afford to reduce workdays abruptly due to the need for daily delivery services, they have adopted a flexible approach. Non-operational teams are allowed to work remotely four days a week, requiring only one day in the office, which has proven effective in maintaining productivity.
Public vs. Private Sector Dynamics
Public sector entities, such as government ministries, may have more leeway in implementing a four-day workweek, as they do not face direct business competition. However, private companies must carefully consider their competitive edge. Abbie Amelia Goenawi warns that reducing workdays could put businesses at a disadvantage if competitors maintain longer workweeks. “If competitors work five or six days a week while we work only four, we risk losing customers, falling behind in innovation, or even ceding market share,” she asserts.
The Path Forward
The four-day workweek presents both opportunities and challenges. Its success depends on various factors, including industry type, workplace culture, and organizational readiness. As Indonesia navigates this transition, it is crucial to conduct comprehensive studies to assess the readiness of its workforce and economy for such a shift. Abbie emphasizes the need for further research to determine the impact on productivity, mental health, customer satisfaction, and the overall economy.
Indonesia’s Ministry of State-Owned Enterprises’ adoption of a four-day workweek marks a significant step toward reimagining traditional work structures. While the policy aims to enhance employee well-being, it also raises critical questions about productivity, competitiveness, and economic sustainability. As the nation embarks on this experiment, it must carefully weigh the benefits against the potential drawbacks, considering the diverse needs and challenges of its various industries.
Sources: Provoke Media (2025), CNA (2025), Independent (2025)
Keywords: Indonesia, Four-Day Workweek, Employee Well-Being, Productivity, Work-Life Balance
