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Indonesia Expat
Indonesia Expat
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsApp**Indonesia's government is actively reviewing a scheme that would institutionalize one day of remote work per week within a reformed five-day workweek **
Indonesia's government is actively reviewing a scheme that would institutionalize one day of remote work per week within a reformed five-day workweek policy. The review represents a significant pivot in how the state approaches labor flexibility, moving from informal pandemic-era accommodations toward codified hybrid work entitlements.
The initiative reflects ongoing pressure from employers and employees alike who adapted to flexible arrangements during the COVID-19 period and are reluctant to fully revert to traditional five-day in-office schedules. Indonesia's Ministry of Manpower has been the primary body examining the proposal, with discussions touching on how to balance productivity requirements with evolving worker expectations.
Under the current framework, Indonesia's standard working hours are regulated under Manpower Law No. 13 of 2003, subsequently revised by the Job Creation Law (Omnibus Law) of 2020. Neither legislation explicitly codifies remote work entitlements, leaving WFH arrangements largely to bilateral employer-employee agreements or internal company policy. The proposed scheme would change that by enshrining at least one WFH day per week as a minimum standard.
The timing of the review aligns with broader labor reform discussions in Indonesia, including ongoing debates about the gig economy, freelance protections, and the classification of digital workers. Policymakers are weighing whether a blanket WFH mandate is operationally feasible across Indonesia's diverse sectors, from manufacturing and agriculture to services and tech.
No final regulation has been enacted as of this report. The review remains in a consultative phase, with stakeholder input being gathered from industry associations, labor unions, and regional government bodies. Implementation timelines, compliance mechanisms, and any sector-specific exemptions have not yet been publicly defined.
For our clients running businesses in Bali — whether PT PMA setups, representative offices, or entities employing Indonesian staff — this policy review is worth monitoring closely, even if no regulati
on has passed yet. Indonesia rarely signals labor reform without eventually codifying it, and the direction here is clear: hybrid work is moving from ad hoc practice to legal expectation.
For foreign
-owned companies, the practical implication is that employment contracts drafted today should already anticipate flexible work clauses. Contracts that rigidly mandate full in-office attendance five days a week may require amendment if this scheme passes, creating administrative overhead and potential labor disputes. Getting ahead of the curve now — by building flexible language into contracts from the outset — is the smarter play.
For individual expats holding KITAS under sponsored employment, this development is largely benign. It does not change visa categories or work authorization requirements. However, it does reinforce the legitimacy of hybrid work models in Indonesia, which is relevant context for anyone navigating investor visa or work permit discussions where work location is a factor.
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