Pertamina is in talks with state-owned pharmaceutical producer PT Kimia Farma to supply certain petrochemicals needed for drug production. The oil company, through a hospital subsidiary, also plans to acquire dozens of new hospitals over the year.

“We see an opportunity,” said Pertamina president director Nicke Widyawati on April 30. “What kind of business, during any crises, continues to survive or even grow? It’s medicine.”

The oil company’s dive into medicine followed a slump in fuel demand across partially locked down Indonesia. Consumption plunged 35 percent to 65,678 kiloliters (KL) per day in April from the daily average in January and February — before the country introduced a physical distancing policy requiring people to stay at home to contain the COVID-19 outbreak.

As of Tuesday, four provinces and 26 regencies/cities nationwide have implemented large-scale social restrictions (PSBB) or partial lockdowns that closed offices, factories and schools, and limited people’s movements.

Due to the falling demand, Pertamina projects its revenue — almost all of which comes from fuel sales — to fall by up to 45 percent below initial expectations under a worst-case scenario.

Pertamina spokeswoman Fajriyah Usman told The Jakarta Post on May 18 that the oil company would prepare the base ingredients for pharmaceutical production, “then either Kimia Farma or Kimia Farma with Pertamina will process the ingredients into pharmaceuticals”.

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