The Ministry of State-Owned Enterprises in Indonesia has introduced a revolutionary four-day work week policy, known as the Compressed Work Schedule. This initiative allows employees meeting the 40-hour weekly requirement to work from Monday to Thursday, aiming to alleviate stress and enhance work-life balance. Following a successful pilot program that launched in June of the previous year, the policy is now available for voluntary adoption by employees across state-owned enterprises.
The introduction of this policy comes amid global conversations about work-life balance and employee well-being. However, it raises questions among human resource experts and business leaders about its feasibility across different industries. While the policy is designed to offer flexibility, not all sectors can easily transition to such a schedule.
Reno Rafly, Vice President of People Experience at Paxel Indonesia, highlights the complexities involved in adopting a four-day work week across industries. He notes that the policy may suit flexible sectors such as technology or creative industries but poses significant challenges for those requiring constant operational demands. Tedi Bharata, Deputy Minister for Human Resources, Technology, and Information at the Ministry, echoes this sentiment, emphasizing that sectors like manufacturing and public services may find the change particularly demanding.
“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,” – Tedi Bharata.
Private companies face additional hurdles when considering this new work model. Abbie Amelia Goenawi, Human Resource Head at a leading Indonesian retail company, warns that reducing workdays could diminish a company’s competitive edge if rivals maintain longer schedules. She stresses the importance of aligning with market demands to avoid losing customers or falling behind in innovation.
“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,” – Abbie Amelia Goenawi.
Furthermore, a senior executive from a fintech startup shared their company's experience with the four-day work week. Initially, the company noted increased productivity and employee well-being. However, by the sixth month, challenges such as uneven workloads and delays became apparent. The company found that while mental health benefits were significant, the policy inadvertently increased stress for many.
“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,” – A senior executive at a fintech startup.
“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,” – A senior executive at a fintech startup.
The fintech's experience illustrates that productivity relies more on efficiency and time management rather than merely reducing workdays. Therefore, while the four-day work week offers potential benefits, it may not be suitable for all businesses.
“Productivity is more about efficiency and time management than the number of workdays,” – A senior executive at a fintech startup.
For companies like Paxel Indonesia, adopting a flexible approach appears to be more successful. The company allows non-operational teams to work remotely four days a week while requiring only one day in the office. This method provides employees with autonomy while maintaining operational efficiency.
The debate continues as business leaders explore whether the four-day work week can be universally applied. An employee from a state-owned enterprise noted that further studies are needed in developing nations like Indonesia to understand its impact on productivity and economic stability.
“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," – An employee at a state-owned enterprise.
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