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

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.

Kinerja tingkat pengembalian saham batu bara dalam isu krisis energi

“…Bisnis batu bara di Indonesia sempat mengalami kondisi yang kurang baik akibat adanya pandemi COVID-19 dan mulai membaik pada tahun 2021 saat terjadinya lonjakan permintaan dari Cina (Haq et al, 2021). Barasyid Guna mencapai tujuan studi ini maka beberapa alat analisis akan digunakan pada tingkat signifikansi 5%.…”

Clustering and Financial Performance Analysis of Indonesian Coal Mining Industry Stock Prices

“…Grouping or clustering these prices can reveal inherent trends, providing a coherent picture of the market's operations, and guiding investors and policymakers in their decision-making [8]. A detailed understanding of financial health within these groups can further shed light on the companies' financial stability, essential for strategic planning and risk mitigation [9]. Past investigations, like those conducted by Fianty and Gunawan [10], have emphasized the need for solid analytical techniques to unravel the complex interplay between financial ratios and stock prices in this sector.…”