Indonesia's Oil Trade Deficit Narrowed in 2020

Indonesia's oil trade deficit narrowed in 2020. Based on BP data, the Indonesian oil trade deficit decreased by 42.33%, from 844,740 barrels per day (bpd) in 2019 to 487,160 bpd in the past year.

The narrowing of Indonesia's oil trade deficit coincided with a significant decrease in domestic consumption. Recorded consumption decreased by 24.35%, from 1.6 million bpd in 2019 to 1.2 million bpd in 2020.

Meanwhile, national oil production amounted to 742,900 bpd in 2020. This figure only decreased by 4.91% compared to 2019, which was 781,400 bpd.

The decrease in oil consumption occurred due to restrictions on social activities to curb the spread of the Covid-19 coronavirus. In addition, the government mandated the blending of diesel fuel with 20% biodiesel (B20).

It should be noted that Indonesia has experienced an oil deficit since 2003, coinciding with increasing oil consumption while production continues to shrink. The deepest oil deficit was 844,740 bpd in 2019, where consumption reached 1.63 million bpd and production was 781,380 bpd.

Indonesian oil consumption contributed 1.4% to the global total in 2020. Meanwhile, national oil production contributed 0.8% to the world total last year.