Article: Inside Indonesia: Flexible work arrangements that work

Life @ Work

Inside Indonesia: Flexible work arrangements that work

Businesses like L’Oréal and Digiserve are leading with hybrid models that boost productivity and inclusion among workers in Indonesia.
Inside Indonesia: Flexible work arrangements that work
 

Indonesia is redefining work with flexible policies, hybrid models, and talent playbooks to drive productivity, wellbeing, and business innovation.

 

It’s the Thursday before Eid al-Fitr. The roads in Jakarta are eerily quiet. The usual bottlenecks at the toll gates are gone, and the chorus of motorbikes muted. What resembled a migration crisis is now a managed rhythm. What made all the difference for Jakarta? A government circular that let civil servants work from anywhere.

It’s a glimpse into Indonesia’s reimagined workplace, where flexible work is no longer a pandemic band-aid solution but a structural reset. And the verdict? It’s working.

Indonesia stands at a critical crossroads in the evolution of work. With a mix of forward-thinking public policy, private-sector experimentation, and global ambition, the archipelago is reassessing how, where, and why we work. In a region still grappling with balancing tradition and transformation, Indonesia is proving that flexibility at work is not a fad but a formula.

No handouts, just hard data

Indonesia’s shift towards flexible work isn’t motivated by subsidies or flashy incentives.

But while it’s true that there’s no pot of gold for companies embracing hybrid work, the Indonesian government isn’t sitting idle. In fact, it’s sending all the right signals.

A March 2025 circular, for example, gave public servants the green light to work remotely ahead of Eid. This ended up reducing congestion and boosting work-life balance.

Meanwhile, the Ministry of State-Owned Enterprises is testing a four-day work week setup, letting employees complete 40 hours across four days, twice a month.

Even more striking is the launch of the Remote Worker Visa (E33G) for foreign digital nomads. With this move, Indonesia isn’t just competing for talent locally but also playing on the world stage by offering tropical charm with professional mobility.

Overall, there have been no direct government incentives so far for companies that go hybrid or remote. What’s fuelling this movement is pure business logic and a strong dose of common sense.

Take L’Oréal Indonesia, for example. Long before COVID forced the world into Zoom fatigue, L’Oréal introduced flexible hours and remote options in 2016. By the time the pandemic hit, it wasn’t scrambling; it was scaling. Today, its hybrid model isn’t just a nod to modernity; it’s a cornerstone of it.

Then there’s Digiserve by Telkom Indonesia, blending flexibility with gender equality in STEM. By creating space for diverse working styles, the company has boosted not just balance sheets, but representation and inclusion.

Startups are in on the act too. eFishery, Stockbit, Niagahoster, and others have embraced remote work as a default, not a fallback. The results have shown productivity is up by more than 50%, quality of work improved by over 56%, and happier teams are staying put.

Lessons on managing flexible work effectively

If you’re a business or HR leader clinging to the myth that a bum-in-the-seat equals output, it’s time to face facts: rigidity is a relic and the future is flexible. So, what separates the frontrunners from the floundering few are three key things:

1. Measuring what matters

Success isn’t just about showing up but about showing results. Indonesian firms leading the charge use a balanced scorecard to track productivity (task completion, project timelines), satisfaction (engagement surveys, feedback loops), and cost savings (reduced office space, fewer allowances). They even track wellness indicators such as burnout and mental health. After all, if workers are running on empty, your bottom line will eventually follow suit.

2. Keeping the human in hybrid

Flexibility is more about trust than logistics. Leaders must go beyond KPIs and nurture culture, connection, and collaboration. Whether through regular check-ins, digital coffee chats, or team retreats, maintaining a sense of belonging is critical in dispersed workforces.

3. Leading from the top

When the C-suite walks the talk, people follow. Successful firms treat flexibility as a strategic lever, not a HR experiment. Leadership plays a hands-on role in shaping policies, reviewing impact, and course-correcting in real time.

Replicating success for other companies in Indonesia

Want to future-proof your workplace? Here’s the starter kit:

Start with pilots. Choose teams that can operate remotely and test hybrid models. Tweak, learn, expand.

Invest in tech. Digital tools aren’t luxuries – they’re lifelines. Provide training and troubleshoot adoption early.

Communicate often. Transparency builds trust. Let employees know what’s changing, why, and what success looks like.

Watch the data. Use metrics across productivity, collaboration, wellbeing, and retention. Don’t fly blind.

Stay flexible with flexibility. What works today might not tomorrow. Be agile, not rigid.

Why there’s no going back to rigid work models

The old office-first model is a broken compass in a fast-moving storm. Indonesia’s embrace of work flexibility is not just reactive – it’s visionary in a world where burnout is rampant and talent is mobile.

In the race for relevance, it’s the agile, not the arrogant, who will thrive. Stop treating flexibility as a fringe benefit and start seeing it for what it is – a business imperative.

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Topics: Life @ Work, Employee Engagement, #Flexibility, #RemoteWork

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