Open AccessEconomy in Times of Crisis: An Economic Analysis of the Energy Policy during COVID-19 Pandemic
Author(s) -
Mochamad Ali Imron
Publication year - 2021
Publication title -
international journal of management research and social science
Language(s) - English
Resource type - Journals
eISSN - 2394-6415
pISSN - 2394-6407
DOI - 10.30726/ijmrss/v8.i2.2021.82011
Subject(s) - refinery , oil refinery , revenue , upstream (networking) , consumption (sociology) , covid-19 , business , petroleum , natural resource economics , pandemic , energy supply , production (economics) , energy policy , economics , economy , renewable energy , waste management , energy (signal processing) , finance , engineering , macroeconomics , social science , mathematics , pathology , sociology , biology , telecommunications , paleontology , medicine , statistics , disease , infectious disease (medical specialty) , electrical engineering
The oil and natural gas industry plays an important role in the Indonesian economy, as a source of revenue for the state budget and a source of energy (particularly fuel) to power various sectors of life throughout Indonesia. Lockdown and restrictions on human movement have led to a direct reduction in demand for fuel. In addition to a decline in consumption, Covid-19 also resulted in a decrease in the price and production of oil and gas energy, including the cessation of upstream activities and the reduction of refining activities (refinery). The recommendations put forward include the establishment of strategic petroleum reserves, reviewing oil refinery projects and green fuel, and not reducing the selling price of fuel.