Covid-19 and Coal Industry in Indonesia: A Preliminary Analysis

Shofa Rijalul Haq, Ratna Mustika Dewi, Lidana Erfiandri, Puji Handayani Kasih, Aldin Ardian

Abstract


Corona Virus Disease (COVID-19) pandemic dramatically impacted the energy sector. About 4.5% of global primary energy consumption dropped in 2020, where coal demand decreased by 220 million tons of coal equivalent. The drop was driven by lower electricity demand due to policies against Covid-19 (i.e., travel restriction, lockdown, and new standard). In particular, the COVID-19 crisis has already created profound uncertainties for the Indonesian coal mining industry as one of the world's largest coal producers and exporters. Coal is the primary energy source for Indonesian electricity, contributing to the national revenues. A debate about action to take, whether to focus on dealing with Covid-19 health or maintaining economic growth, is unavoidable. With the number of cases continuing to rise, we set out to investigate the impact of COVID-19 on Indonesia's coal mining industry. Rapid desk assessment and descriptive statistical approach were used in this study by evaluating secondary data during the pandemic, comparing with previous years before the COVID-19 pandemic. The results revealed a tangible transformation in coal demand, production, and price. Despite domestic coal consumption for power generation decreased, the coal price increased in mid of 2021 due to rising coal demand in China.

Full Text:

PDF

References


Al-Rohaimi, A. H., & Al Otaibi, F. (2020). Novel SARS-CoV-2 outbreak and COVID19 disease; a systemic review on the global pandemic. Genes and Diseases, 7(4), 491–501. https://doi.org/10.1016/j.gendis.2020.06.004

Azarova, V., & Mier, M. (2021). Market Stability Reserve under exogenous shock: The case of COVID-19 pandemic. Applied Energy, 283(September 2020), 116351. https://doi.org/10.1016/j.apenergy.2020.116351

BP. (2020). Statistical Review of World Energy globally consistent data on world energy markets . 66. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2020-full-report.pdf

Edomah, N., & Ndulue, G. (2020). Energy transition in a lockdown: An analysis of the impact of COVID-19 on changes in electricity demand in Lagos Nigeria. Global Transitions, 2, 127–137. https://doi.org/10.1016/j.glt.2020.07.002

Gala, A., Tost, M., Kot-Niewiadomska, A., Czerw, H., Warell, L., & Gała, S. (2021). Impact of Covid-19 on the Mining Sector and Raw Materials. Resources, 10(39), 1–23.

Garinas, W. (2020). the Impact of Covid-19 Pandemic on Metal Mineral Commodities in Indonesia and Their Mitigation in Mining Activities. Jurnal Sains Dan Teknologi Mitigasi Bencana, 15(2), 123–130. https://doi.org/10.29122/jstmb.v15i2.4461

International Energy Agency. (2020). Global Energy Review 2020. In Global Energy Review 2020. OECD. https://doi.org/10.1787/a60abbf2-en

Laing, T. (2020). The economic impact of the Coronavirus 2019 (Covid-2019): Implications for the mining industry. Extractive Industries and Society, 7(2), 580–582. https://doi.org/10.1016/j.exis.2020.04.003

Madurai Elavarasan, R., Shafiullah, G. M., Raju, K., Mudgal, V., Arif, M. T., Jamal, T., Subramanian, S., Sriraja Balaguru, V. S., Reddy, K. S., & Subramaniam, U. (2020). COVID-19: Impact analysis and recommendations for power sector operation. Applied Energy, 279(August), 115739. https://doi.org/10.1016/j.apenergy.2020.115739

Ministry of Energy and Mineral Resources. (2020). Annual Report.

Nugroho, H. (2020). Pandemi Covid-19: Tinjau Ulang Kebijakan mengenai PETI (Pertambangan Tanpa Izin) di Indonesia. Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 4(2), 117–125. https://doi.org/10.36574/jpp.v4i2.112

Progressive Digital Media Ltd. (2020). Covid-19 : How the coronavirus pandemic is hurting the mining. https://www.mining-technology.com/features/how-covid-19-is-hurting-mining/

Reuters. (2020). South African Mining Sector Braces for Coronavirus Lockdown. The VOA News. https://www.voanews.com/africa/south-african-mining-sector-braces-coronavirus-lockdown

Szczygielski, J. J., Charteris, A., Bwanya, P. R., & Brzeszczyński, J. (2021). The impact and role of COVID-19 uncertainty: A global industry analysis. International Review of Financial Analysis, 101837. https://doi.org/10.1016/j.irfa.2021.101837

Yanguas Parra, P., Hauenstein, C., & Oei, P. Y. (2021). The death valley of coal – Modelling COVID-19 recovery scenarios for steam coal markets. Applied Energy, 288. https://doi.org/10.1016/j.apenergy.2021.116564




DOI: https://doi.org/10.31315/jmel.v5i2.6787

Refbacks

  • There are currently no refbacks.




This Journal indexed to :

 

Crossref Content Registration JMEL on GS    

 

====================================================

Jurnal Mineral, Energi, dan Lingkungan

Published By: Universitas Pembangunan Nasional Veteran Yogyakarta

Addres: Jl. Padjajaran Jl. Ring Road Utara No.104, Ngropoh, Condongcatur, Sleman, Yogyakarta

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Statistik Jurnal Statistik Jurnal