Indonesia ministry rolls out 4-day work week, but what do country’s HR and business leaders think?

SINGAPORE: An Indonesian ministry’s recent rollout of a four-day work week has sparked discussions and conflicting views across the archipelago. 

Some praise the potential benefits of such a move but others warn of risks to productivity, competitiveness and profitability.

The Ministry of State-Owned Enterprises' policy, aimed at reducing its employees’ stress levels and improving work-life balance, was officially rolled out last month, following a successful pilot programme that started in June last year. 

Known as the Compressed Work Schedule, the voluntary programme allows employees of the ministry who meet the 40-hour work requirement the option to work four days a week.

CNA reached out to Tedi Bharata, deputy minister for human resources, technology and information at the Ministry of State-Owned Enterprises for further insights into the policy’s implementation and its impacts so far. 

However, Tedi declined to comment, citing internal commitments on the newly launched Danantara sovereign wealth fund.  

TRIAL AND ERROR IN THE FOUR-DAY WORK WEEK EXPERIMENT

While some companies have also experimented with the four-day work week, not all have found success. One senior executive at a fintech startup that previously adopted the system shared the company's experience with CNA on condition of anonymity. 

Initially, employees welcomed the shorter work week, which compressed 40 hours of work into four days from Monday to Thursday. Workers reported feeling more refreshed, focused and able to spend quality time with their families.

“By Sunday, we were mentally prepared for Monday because we had already enjoyed two days off (Friday and Saturday). The benefits were clear,” the executive said.  

However, problems soon began to emerge. 

"At first, the company observed a rise in productivity and employee well-being, along with improved overall performance. However, by the sixth month, issues started to surface," said the executive. 

Coordination between departments became a significant issue, as some teams worked only four days while others, particularly those in client-facing roles, had to operate on Fridays to meet client expectations.

“Clients still expected services to run on Fridays, which created a disconnect. Teams working on Fridays felt unfairly burdened, blaming the policy for uneven workloads and delays,” the executive explained.

Additionally, tasks previously spread over five days had to be completed in four, leading some employees to work overtime despite the shorter official work week.

The senior executive gave the example that if work is assigned on Thursday and must be completed by the following week, workers are left with no choice but to work on Friday, which is officially a day off.

The company then assessed that the mental and workload burden did not seem to be evenly distributed across all departments.

It eventually reverted to a five-day work week, concluding that while the four-day system seemed beneficial for mental health, it inadvertently increased work pressure and stress for many employees. 

CHALLENGES FOR INDUSTRIES DEPENDENT ON PHYSICAL PRESENCE

Not all industries can easily adopt a four-day work week. Retail, for instance, relies heavily on direct customer interaction. Abbie Amelia Goenawi, human resource head at a leading Indonesian retail company, explained that reducing work days could directly impact sales. 

“Retail requires employees to be physically present in stores. Fewer work days mean fewer opportunities for customers to purchase products” she told CNA. 

An executive at a state-owned enterprise, who requested anonymity, agreed that while the four-day work week has potential benefits, its success depends on the industry.

“In flexible sectors like tech or creative industries, it might work. But in manufacturing, energy, or public services, operational demands are 24/7, making it challenging,” he opined.

Similarly, industries like healthcare, tourism, and logistics face significant hurdles. 

Reno Rafly, vice president of people experience at Paxel Indonesia, a logistics technology company, said that it has to run delivery services daily and cannot afford to reduce workdays abruptly. 

Instead, Paxel has adopted a flexible approach, allowing non-operational teams to work remotely four days a week while requiring only one day in the office. 

Reno said this hybrid model has proven effective in maintaining productivity.

DIVERGING PERSPECTIVES: PRIVATE SECTOR VS GOVERNMENT

Public sector entities such as government ministries do not have to worry about the threat of direct business competition when it comes to implementing a four-day work week.

However, private companies, according to Abbie, must consider their competitive edge. 

Abbie warned that reducing workdays could put businesses at a disadvantage if competitors maintain longer work weeks. 

“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 said.

She added that private companies must not only ensure employee well-being but also maintain business sustainability amid fierce competition.

Abbie also emphasised that the key question is how government institutions, whose primary stakeholders are the Indonesian people, can effectively serve public needs if they operate only four days a week.

Another employee at a state-owned enterprise expressed scepticism, arguing that not all tasks can be completed in fewer days, especially those requiring cross-team coordination or daily operations.  

“Reducing work days could complicate team coordination, particularly if different departments or individuals have different schedules,” he said, adding that he was not interested in trying the system.

“Productivity is more about efficiency and time management than the number of workdays,” he concluded.

For now, the policy’s implementation is limited to the Ministry of State-Owned Enterprises, with no immediate plans to extend it to state-owned enterprises under its purview.

NO ONE-SIZE-FITS-ALL SOLUTION

The four-day work week may offer benefits for certain sectors, but it is not a universal solution, according to the business leaders CNA spoke to. They said Its success depends on industry type, workplace culture, and organisational readiness. 

Abbie argued that Indonesia, as a developing country, needs further studies to assess whether its workforce and economy are prepared for such a shift. 

"This system might work in countries with stable economies, but in developing nations like Indonesia, further study is needed to determine whether the culture and societal habits are ready, as well as its impact on productivity compared to mental health, customer satisfaction, and the overall economy of the country," she said.

"This policy can succeed if it is implemented evenly by all parties involved in the company. If only some follow it, the results will not be optimal," said a senior executive of a fintech startup that has experienced the four-day work system.

Reno agreed, adding: "There is no one-size-fits-all solution. Just because one institution succeeds with a four-day work week doesn’t mean it will work for others."