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Yearender 2020: Indonesian energy demand collapses to record lows
Energy demand has plummeted to historic lows as local administrations enacted partial lockdown to contain the pandemic. All but several industries, such as food, finance and medicine, were forced to shut down.
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A Pertashop gas station in a village in Lampung on Oct. 6, 2020. (Pertamina/-)
T
he COVID-19 pandemic hit the global energy market, including Indonesia, this year, as industry players were pressured by low demand due to virus containment measures.
Domestic demand for fuel, gas and electricity began declining in late March, as Indonesia announced its first COVID-19 case earlier that month. President Joko “Jokowi” Widodo then instructed people to work and study from home after a rise in virus cases.
However, it was in April that energy demand plummeted to historic lows as regional administrations, led by Jakarta, enacted large-scale social restrictions (PSBB) to contain the escalating pandemic. All but several strategic industries, such as food, finance and medicine, were forced to shut down.
Indonesia’s two biggest energy companies, state-owned oil giant Pertamina and electricity monopoly PLN, saw their net profits sink into negative territory during the period amid low demand.
Oil, gas and biofuel
Among the three fossil fuels, oil demand and prices fell by the sharpest margin as transport activity grinded to a virtual halt over the second quarter.
The Indonesian crude oil price benchmark (ICP) hit US$20.66 per barrel in April, the lowest level since at least 2017 and down 68.4 percent compared to $65.38 per barrel in January, Energy and Mineral Resources Ministry data show.
