Indonesia’s WFA year-end rules have gained support from business groups, but employers stress that the policy cannot apply to all types of work. The government has encouraged companies to adopt Work From Anywhere (WFA) arrangements from December 29 to 31, 2025, without counting them as annual leave. While employers broadly welcome the flexibility, they emphasize the need to protect business continuity and economic activity during a traditionally busy period.
Employer Support for Indonesia WFA Year-End Rules
Business groups have responded positively to the government’s appeal for flexible working arrangements at the end of 2025. The Indonesian Employers Association (Apindo) sees WFA as suitable for civil servants and roles that allow location flexibility without disrupting output. Employers view the policy as a reasonable step, provided it aligns with operational realities.
“WFA cannot be applied to all types of work. Of course, we support the government for civil servants and others,” said Apindo Chairwoman Shinta Kamdani when speaking at the Ministry of Finance in Jakarta. Her statement reflects a broader employer stance that supports flexibility while recognizing sector-specific limitations.
Not All Jobs Can Adopt Flexible Work Arrangements
Despite this support, employers underline that many roles still require physical presence. Manufacturing operations, factories, and certain service-based roles depend on on-site workers to function properly. For these sectors, remote work remains technically impossible.
“If it is a factory, it is not possible. Certain services also cannot be carried out from outside the office,” Shinta explained. Employers argue that forcing WFA on such sectors could reduce efficiency and disrupt essential operations. As a result, they urge companies to assess job functions carefully before implementing flexible arrangements.
Year-End Peak Season Raises Economic Concerns
Another key concern involves the timing of the policy. The end of December often marks a peak season for many industries, including manufacturing, logistics, retail, and services. During this period, companies usually require full workforce availability to meet demand and maintain supply chains.
“It should not disrupt the economy or business operations. Even though it is the end of the year, many sectors are actually reaching their peak activity,” Shinta said. Employers worry that a blanket approach to WFA could slow operations during one of the most critical periods of the year. Therefore, they encourage a balanced application that prioritizes productivity.
Work From Anywhere Indonesia May Boost Tourism
However, employers also recognize potential economic benefits if companies apply WFA selectively. Work From Anywhere Indonesia policies could encourage mobility among workers who can operate remotely. Increased movement may lead to higher spending in tourism, hospitality, and related sectors.
“If the government implements it properly, WFA can become an opportunity for economic activity, especially tourism and other supporting sectors,” Shinta noted. Employers believe that flexible work could stimulate consumption while allowing businesses to maintain output, as long as companies apply the policy to suitable roles only.
Government Urges WFA Without Cutting Annual Leave
Meanwhile, the government has clarified its expectations for the policy. The Ministry of Manpower has urged private companies to ensure that WFA arrangements from December 29 to 31, 2025, do not reduce employees’ annual leave entitlements. Instead, companies should treat WFA as a flexible working arrangement rather than time off.
“We also urge that the implementation of work from anywhere or flexible working arrangements is not counted as annual leave,” said Manpower Minister Yassierli. He also stressed that employees must continue fulfilling their duties and responsibilities while working remotely.
Balancing Flexibility and Business Needs
Overall, Indonesia’s WFA year-end policy has received conditional support from employers. Business groups welcome flexibility for suitable roles but reject a one-size-fits-all approach. As companies enter a busy year-end period, they must balance employee flexibility with operational demands. Selective implementation, clear expectations, and sector-specific assessments remain critical to ensuring that WFA supports both workers and economic stability.
Source: kumparan.com, ekbis.sindonews.com
Image: Getty Images
