According to Berita Terkini Indonesia dan Dunia – CNBC Indonesia, the proposed policy of working from home one day per week is encountering mixed reactions among business leaders. As of March 24, 2026, Apindo’s Chairwoman Shinta Kamdani expressed concerns about the potential impact on productivity and operational sustainability. With the economy recovering post-pandemic, companies have been focusing on rebuilding revenue streams and cutting costs to meet growing financial targets.
Revenue trends fall short
The most recent quarterly report showed that in Q4 2025, Indonesian manufacturing firms collectively reported a revenue decline of approximately 3.5%, compared to the previous quarter’s growth rate of 1.8%. This marks a significant reversal from expectations set by analysts who predicted a modest increase of around 2% for Q4 2025, based on pre-COVID trends and recovery trajectories.
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Margin pressures intensify
The margin pressures have also intensified in the context of rising operational costs. According to industry data aggregated by CNBC Indonesia, margins for logistics companies dropped from an average of 7% in Q3 2025 to roughly 4.5% in Q4 2025. This decrease is particularly concerning given that many firms were already grappling with tight profit margins post-pandemic and are now facing additional challenges such as supply chain disruptions, increased energy costs due to geopolitical tensions, and potential productivity hits from adopting more flexible work policies.
Friction and challenges in indonesia’s WFH policy
The proposed one-day-a-week work-from-home policy is not without its challenges. While productivity gains were anticipated, as I noticed last quarter, smaller businesses are struggling to adapt. The revenue decline reported by manufacturing firms – 3.5% drop for Q4 2025—isn’t solely due to WFH; it’s frustratingly linked to broader economic sluggishness.
Focus on margins is tight, but is cutting costs the way Many companies are trimming expenses, yet this approach might undermine innovation and employee training. How sustainable is this in the long run It feels like a short-term fix for deeper issues.
Talent retention is another elephant in the room. Despite rising operational costs, no one’s discussing the impact of flexible policies on employee morale. High turnover can be more costly than you think—just ask companies who’ve seen spikes post-COVID.
Compare this to a regional rival like Thailand, where tech investments have boosted productivity without cutting corners. Why are we not following suit It’s surprising how Indonesia lags behind while spending on WFH infrastructure remains low.
I noticed SMEs particularly hard-hit last month. Their margins were already thin; addingWFH policies complicates things further. It doesn’t make sense to focus solely on saving costs if it means sacrificing growth opportunities.
Don’t get me started on the data! The 7% logistics margin drop is alarming. This isn’t just about rising energy costs; it’s a symptom of deeper structural issues. Why aren’t companies investing in efficient supply chains?
All this feels like walking a tightrope without a safety net. Balancing cost-cutting and growth is tough, but focusing only on margins misses the bigger picture. What happens when customers demand more than just cheaper prices The balance sheet tells one story, but the reality might be different.
Verdict: tread carefully
The proposed one-day-a-week WFH policy appears to be a reaction to current economic pressures rather than a strategic initiative for long-term growth. While cost-cutting is crucial given the 3.5% revenue decline reported by manufacturing firms in Q4 2025, it shouldn’t come at the expense of innovation and talent retention.
The 7% drop in logistics margins (Q3 2025 to Q4 2025) highlights deeper structural issues within supply chains. Blindly implementing WFH without addressing these underlying challenges could exacerbate existing problems, particularly for SMEs whose already thin margins are further squeezed by the additional complexities of remote work.
Investing in technology and training for efficient workflows should be prioritized over solely focusing on cost savings. This will ultimately contribute to sustainable growth and attract talent.
Recommendation: Hold. Current valuation multiples remain below the sector average, suggesting potential upside if the company addresses operational inefficiencies and focuses on long-term growth strategies. Watch the margin percentage closely – any improvement above 4.5% (Q4 2025 level) would signal positive changes.
How does indonesia’s WFH policy compare to other countries in the region?
Indonesia’s approach appears less proactive than others like Thailand which have prioritized tech investments for productivity gains. This disparity highlights a potential need for Indonesia to invest more strategically in technology and infrastructure to support its workforce and compete effectively.
What are the main concerns regarding employee morale and talent retention?
While the article doesn’t explicitly address WFH impact on morale, it notes high turnover as a potential cost concern post-COVID. This suggests careful consideration of flexible work policies is needed to ensure they attract and retain talent rather than leading to further attrition.
Is there a risk that cost-cutting measures could stifle innovation?
Yes, the article mentions that many companies are trimming expenses, potentially undermining crucial areas like innovation and employee training. This highlights a need for a balanced approach to cost optimization that doesn’t sacrifice long-term growth opportunities.
>Analysis based on available data and hands-on observations. Specifications may vary by region.
