by Ellisa Priastiningtyas

In an era of rapid economic growth and fierce business competition, Indonesian companies are under immense pressure to deliver performance. But amid rising targets and tighter deadlines, one crucial component of long-term productivity remains severely undervalued: employee mental health.

Despite growing global awareness of the impact of mental well-being in the workplace, many Indonesian businesses still perceive mental health initiatives as optional, even expendable. This mindset is not only outdated; it’s economically shortsighted. Scientific evidence shows that investing in mental health is not a cost, but a catalyst for productivity and retention.

The Stress-Productivity Trap

Indonesia’s economic growth over the past decade, averaging 5.25%, has attracted massive foreign investment, opening up job opportunities across sectors. However, as noted by Irfani & Bantarti (2023), this progress brings increased complexity and workplace competition, which in turn intensifies employees’ responsibilities and stress levels.

This phenomenon isn’t abstract. A study by Matindas, Suoth, and Nelwan (2018) cited in the journal clearly shows a negative correlation between stress and productivity: the more stressed an employee becomes, the more their output declines. Ironically, while businesses chase efficiency, they may be undermining it by overlooking the toll of mental strain.

Mental Health: A National Concern, A Corporate Blind Spot

Indonesia does have a legal framework for mental health, notably Law No. 18 of 2014, and allocates 3% of its GDP for health, with 1% specifically for mental health (Ministry of Health, 2020). But implementation is slow, and in corporate settings, the stigma persists.

Employees are still afraid to speak up about mental health issues, fearing they’ll be labeled as “weak” or “unstable.” As Subu et al. (2021) point out, this stigma is rooted in cultural beliefs, such as viewing mental illness as spiritual possession, which discourages workers from seeking help.

Without proper intervention, these unaddressed issues result in presenteeism (being physically present but mentally unwell), burnout, and high turnover, all of which carry hidden financial costs for employers.

Mental Health Promotion: An Untapped Strategic Tool

The journal identifies three science-backed strategies companies can use to promote mental health and, in turn, boost performance:

1. Working Motivation and Work Environment
2. A pre-survey of 250 IDX (Indonesia Stock Exchange) employees showed that less than 50% felt motivated or comfortable in their work environment (Riyanto et al., 2017). Factors like poor office layout, inadequate privacy, and lack of rewards contribute to stress and disengagement. Yet when companies improve physical and psychological work environments, employee morale rises.
3. Ethical Leadership and Psychological Empowerment
4. Research involving 219 employees at public accounting firms in Jakarta found that ethical leadership correlates positively with psychological empowerment (Rantika & Yustina, 2017). Leaders who model empathy and fairness foster trust and resilience among staff, reducing burnout and strengthening commitment.
5. Self-Efficacy and Employee Engagement
6. A study of PT Telekomunikasi Indonesia (Surabaya) employees revealed that low self-efficacy hurts performance (Ardi et al., 2017). Self-efficacy, an individual’s belief in their capacity to succeed — is nurtured by supportive environments, clear career paths, and meaningful recognition. Employees who feel confident and engaged are more productive and loyal.

Taken together, these findings suggest that mental health promotion is not only ethical but economically rational. Companies that create supportive, empowering workplaces see direct gains in employee retention, creativity, and performance.

Mental Health as Investment, Not Expense

The outdated notion that mental health services are “luxuries” must be replaced with a return-on-investment (ROI) perspective. According to the World Health Organization (2016), for every USD 1 invested in mental health treatment, businesses see a return of USD 4 in improved health and productivity.

The Indonesian context aligns with this. Irfani & Bantarti (2023) argue that companies must integrate mental health into their broader organizational policies, through leadership training, reward systems, and design of workspaces. Mental health promotion must move from the margins of HR to the core of business strategy.

What Companies Can Do

Based on the journal's recommendations, here are practical actions Indonesian companies can take:

• Allocate specific budgets for mental health programs (e.g., counseling services, stress management training, mental health days).
• Incorporate mental health KPIs into HR and management performance indicators.
• Train leaders and managers in ethical leadership and psychological safety.
• Create private and flexible workspaces, reducing stress-inducing environments.
• Recognize and reward employee achievements to foster motivation and self-efficacy.
• Collaborate with social workers or mental health professionals to design customized wellness programs.

The Cost of Doing Nothing

Failing to invest in mental health doesn’t just hurt employees, it jeopardizes the company’s bottom line. Poor mental health leads to lost working hours, recruitment costs due to high turnover, and reputational damage in talent markets.

As Irfani & Bantarti conclude, “mental health problems are a logical consequence of the absence of mental health promotion efforts in the work environment.” Simply put: if you don’t act, problems will surface, and they’ll be more expensive to fix later.

Conclusion: Building a Future-Proof Workplace

Indonesia is at an economic crossroads. As companies scale, they must evolve, not just in technology or finance, but in how they treat their people. The research is clear: mental health promotion is not an act of charity, but a business necessity.

By investing in mental health today, Indonesian companies are not only supporting their workers, they are future-proofing their organizations for sustainable growth and innovation.

References

• Irfani, A. M., & Bantarti, W. (2023). Mental Health Promotion for Productivity of Employee at Workplace in Indonesia. ASEAN Social Work Journal, Vol. 11 No. 01.
• Rantika, R., & Yustina, A. (2017). The impact of ethical leadership on employee engagement.
• Ardi, Z., Astuti, F. D., & Sulistyo, M. (2017). Self-efficacy and performance in Indonesian telecom sector.
• Riyanto, S., Sutrisno, A., & Ali, H. (2017). Work motivation and environment impacts on performance.
• Ministry of Health RI. (2020). National Budget for Mental Health.
• WHO. (2016). Global Health Estimates: Depression and Other Common Mental Disorders.