A ministry in Indonesia has officially adopted a four-day workweek, following a successful six-month pilot program.

The pioneering concept of a compressed work schedule allows eligible employees to fulfil their 40-hour weekly requirement over four days instead of five, up to twice a month.

The policy, which aims to enhance work-life balance and reduce stress among employees, covers employees of the Ministry of State-Owned Enterprises.

But they must fulfil their standard 40-hour work week to be eligible for the compressed schedule. This means they are working longer hours on the days they do work to make up the total hours.

Mixed reactions in Indonesia

The introduction of a four-day workweek in Indonesia’s public sector has ignited important discussions about modernising work practices to enhance employee wellbeing and productivity.

While initial feedback indicates potential benefits, the mixed reactions received underscore the complexity of implementing such a system across diverse industries.

During its pilot implementation, the compressed work schedule encountered several challenges, including coordination issues and increased workload on certain days. This led to concerns about long-term sustainability.

“Reducing work days could complicate team coordination, particularly if different departments or individuals have different schedules,” a sceptical state-owned enterprise employee told the news agency Channel News Asia.

Some private companies have also experimented with similar models, observing initial benefits such as enhanced employee morale and efficiency. For instance, a fintech company reported that employees felt more refreshed and focused, with improved work-life balance.

Also Read: In 2025, the four-day workweek is still best

However, the same challenges soon emerged, leading the company to revert to the old work schedules.

“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,” HR head Abbie Amelia Goenawi said.

A similar arrangement for Southeast Asia?

Indonesia’s move to implement a four-day workweek in its Ministry of State-Owned Enterprises has the potential to inspire other Southeast Asian countries, but its influence will depend on a few key factors: economic structure, labour market flexibility, corporate culture, and political will.

Countries like Singapore and Malaysia are the most likely to be influenced by Indonesia’s four-day workweek initiative. Singapore has already shown significant interest in flexible work models, with surveys indicating that a majority of employees would welcome such a shift.

Malaysian companies, especially in the tech and finance sectors, have also experimented with hybrid work models post-pandemic.

If Indonesia’s experiment demonstrates clear benefits – such as improved productivity and employee wellbeing – these countries may be the first to follow suit, at least within specific industries.

Countries such as Thailand, the Philippines, and Vietnam could consider a four-day workweek in limited capacities, particularly in urban, white-collar sectors.

Thailand has already seen discussions about alternative work models. Meanwhile, the Philippines, with its large business process outsourcing industry, has an incentive to explore work arrangements that reduce burnout and attrition.

However, in these countries, the widespread adoption of a four-day workweek faces obstacles such as strong employer resistance, regulatory rigidity, and economic reliance on labour-intensive industries.

Also Read: Is Southeast Asia ready for the four-day workweek?

Where a four-day workweek might not work

In countries where economies are driven by manufacturing, agriculture, and informal labour, such as Cambodia, Myanmar, and Laos, a four-day workweek might not gain widespread adoption in the near future.

Unlike service-oriented or tech-driven economies that can measure productivity in output rather than hours worked, these labour-intensive industries rely on continuous operations and high workforce availability to maintain economic stability.

Industries such as textile manufacturing, farming, and construction are highly dependent on physical labour and production timelines.

For one, manufacturers operate on strict production schedules to meet global supply chain demands, often running on multiple shifts to maintain efficiency.

A four-day workweek would mean either reducing production output or increasing labour costs by hiring more workers to cover shorter shifts.

Many companies in Cambodia, Myanmar, and Laos also operate with thin profit margins, making it financially difficult to implement a four-day workweek without cutting salaries or increasing costs.

Unlike wealthier nations where businesses may offset lost hours with technology or efficiency improvements, businesses in these developing economies rely on low labour costs to remain competitive.

For instance, garment factories in Cambodia, which supply major global brands, rely on low-cost, high-output production models. Any reduction in workdays would likely result in decreased wages for workers, making it an unpopular and impractical shift.

Laos, one of the poorest countries in Southeast Asia, also has a limited industrial base and depends on foreign investment for economic growth. Employers may be reluctant to risk production slowdowns in an already fragile economy.

Indonesia’s pilot programme will serve as an important case study that will be closely watched. If the initiative proves successful – showing tangible benefits such as higher productivity, employee retention, and overall economic resilience – it could accelerate discussions and experiments in other countries.

However, its success will ultimately depend on how well Indonesia addresses challenges such as workload redistribution, service continuity, and long-term economic impact.