ENERGY POLICY

MALAYSIA vs INDONESIA

MALAYSIA ENERGY POLICY

Lead Body: Ministry of Energy, Green Technology and Water Malaysia

C
H
A
N
G
E
M
A
N
A
G
E
M
E
N
T

Policy Objective: economic efficiency, security of supply & social and

environmental
1. To ensure adequate, secure and cost effective energy supply by developing
energy resources.
2. To promote the efficient utilization of energy and discourage wasteful and
non-productive patent of energy consumption.
3. To ensure environmental protection is not neglected in the pursuit of the
supply of the utilization objective.
Market
Competiti
ve
Low
Carbon
Economy

G
O
V
E
R
N
A
N
C
E

Diversify
Supply
Alternativ
e Source
New
Entrants

E
N
E
R
G
Y
E
F
FI
C
IE
N
C
Y

E
N
E
R
G
Y
S
U
P
P
L
Y

Resource
Allocation
Economic
Developm
ent Path
EE & RE
Uptake

Integrate
d
Regulator
y
Consisten
cy
Market
Discipline
s

Integrate
d
Sequence
d
Gradual
Social
Assistanc
e

E
N
E
R
G
Y
P
R
I
C
I
N
G

Energy Policy - Malaysia

National Primary Energy Source

(2012)

INDONESIA ENERGY POLICY

Lead Body: Ministry of Energy and Mineral Resources
Policy Objective:
1. To guarantee the energy availability through for domestic
need
2. To improve quality services
3. To guarantee long term sustainability of energy supply
4. To guarantee energy for export purposes
5. To conserve and preserve the environment.

E
N
ER
GY
PR
IC
E

To
improve
efficiency
in energy
utilizatio
n from
upstream
up to
downstream

E
N
VI
R
O
N
M
E
N
T

E
N
ER
R
GY
C
O
N
SE
RV
AT
IO
N

Increase
new
renewabl
e energy
share in
national
energy
mix

E
N
ER
GY
DI
VE
RS
IFI
CA
TI
O
N

National Primary Energy Source

(2012)

POLICY: STRENGTH

MALAYSA
INDONES
IA

Promotion of new
upstream fiscal terms
in Malaysia is
incentivizing
development of
marginal field
More market-reflective
gas price in Indonesia
will help attract much
needed foreign
investment

POLICY: WEAKNESSES

MALAYSA
INDONES
IA

Energy Planning is
comprehensive, but
the challenge is in
implementation
Lack of integrated
planning and ad-hoc
decision making

Malaysia & Indonesia Total Primary

Energy Consumption by Fuel

Issues
INDONESIA
Inadequate energy
sector investment
poses a major
challenge for
Indonesia in the gas
sector & power sector
Gas prices have been
on the rise in
Indonesia as public
and private sector
players face up to
market realities.

Issues
MALAYSIA
Peninsular
Malaysia is facing
a looming gas
shortfall which is
exacerbated by
domestic gas price
subsidies.