Hormuz crisis and the economic cost of Indonesia’s work-from-home policy

The Indonesian government’s plan to implement a one-day-a-week Work From Home (WFH) policy for civil servants following the 2026 Eid holidays signals a form of fiscal anxiety in response to persistent global geopolitical turbulence. The escalation of conflict in the Middle East has pushed global crude oil prices above the psychological threshold of $100 per barrel, placing Indonesia, as a net oil importer, in an increasingly precarious fiscal and financial position. Put differently, the “four days at the office, one day at home” scheme functions as an emergency brake aimed at containing the state budget deficit. The government projects that reducing one day of work-related mobility could cut national fuel consumption by as much as 20 percent, equivalent to one-fifth […]