Indonesia's Energy Firm PT Pertamina Posts Net Loss of $767.9M in H1 2020

JAKARTA, KOMPAS.com – Indonesian state energy firm PT Pertamina posted a net loss of $767.92 million in the first semester of 2020 mainly due to the impact of the coronavirus crisis.

PT Pertamina Corporate Communication Vice President Fajriyah Usman said the company had been facing three main challenges throughout the first six months of the year. These include falling crude oil prices, a decrease in domestic fuel consumption, and a fall in the exchange rate of Indonesian rupiah against the US dollar.

“The Covid-19 pandemic has a significant impact on the Pertamina’s business,” said Fajriyah in a statement on August 24.

“Our financial performance has been greatly affected by a decrease in demand, rupiah’s depreciation, and very sharp fluctuating crude prices,” she said.

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Fajriyah said the decline in demand can be seen from the national fuel consumption until June 2020. It reached only about 117,000 kiloliters per day, down 13 percent from 135,000 kiloliters in the same period last year.

She said the demand decreased by 50-60 percent during the country’s partial lockdown in several big cities.

“However, Pertamina is optimistic that until the end of the year it will see a positive trend in profits as the global oil prices and fuel consumption in both industry and retail have slowly started to increase,” she said.

She added that though the company incurred a net loss in the first semester of 2020 compared to the same period last year, Pertamina remains committed to providing optimal services to the people to maintain the national economy.

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“Although the demand fell, the whole process of the business in Pertamina has been running normally. Fuel stations are operating, distribution of fuel, and liquefied petroleum gas is well maintained as we prioritize the energy available for the people.”

She said the transition period towards the adaptation of new habits saw an increase in domestic fuel consumption as it only declined about 12 percent from the previous projection of 20 percent.

“The significant increase in fuel consumption shows the national economy continues to grow in various sectors, therefore Pertamina is optimistic that its performance will remain positive at the end of this year,” she said.

(Writer: Rully R. Ramli | Editor: Erlangga Djumena)

Source: https://money.kompas.com/read/2020/08/25/070700426/ini-3-alasan-pertamina-telan-kerugian-hingga-rp-11-13-triliun.