Ministry of EMR Monitors Development of Energy Situation amid Covid-19

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 159.Pers/04/SJI/2020

Date: 20 April 2020

Ministry of EMR Monitors Development of Energy Situation amid Covid-19

In early March 2020, oil conflicts between OPEC and non-OPEC countries caused oversupply which later triggered a plunge in the world's oil prices. This coincided with the Covid 19 pandemic which had started to spread since early 2020.

In the beginning of April, OPEC+ held a meeting on world oil production which reached an agreement to cut production by 9.7 million barrels per day in May and June 2020 with a possibility for extension. However, the meeting's decision had not given the effect of changing oil prices because demand has been on the decline due to the Covid-19 pandemic causing many countries to apply lockdown policy and the impacts of global economic slowdown.

The government continues to observe the global development while considering domestic energy condition.

"Related to Oil Fuels prices, the government is still observing and evaluating the development of oil prices, including the plan to cut OPEC+ oil production starting next month," said Agung Pribadi, Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources in Jakarta on Monday (20/4).

"Other considerations observed are weakening exchange rate of Rupiah and declining fuels consumption; in fact, in several cities, for example Jakarta, the decline is up to 50 percent. The government monitors this development because we previously reduced prices of Certain Oil Fuels (Pertamax, etc.) in early 2020. Indonesia's oil price is one of the lowest in Southeast Asia and in the world," he added.

The government has been giving subsidies and price compensation for Oil Fuels which amount is on the increase because global oil prices are higher than the domestic selling price of Oil Fuels. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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