Economy in Times of Crisis: An Economic Analysis of the Energy Policy during COVID-19 Pandemic

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.