Indonesia is projected to become the leading driver of energy investments in Southeast Asia starting in 2025, overtaking Malaysia, which has traditionally dominated the region. According to Stephen Salomo, an E&P Market Analyst at Rystad Energy, Indonesia’s contribution to the energy sector's investment landscape is set to experience significant growth in the coming years. Speaking at a media briefing organized by SKK Migas and Rystad Energy in Jakarta on Tuesday (17/12/2024), Salomo highlighted that Indonesia’s share of Southeast Asia’s total energy investments is expected to reach nearly 60% by 2025, marking a pivotal shift in the regional market. This momentum, he noted, was further bolstered by the Final Investment Decision (FID) for the Tangguh Project, a milestone that underscores Indonesia’s rising prominence.
Malaysia, which has historically led energy investments in the region, is beginning to lose its dominant position to Indonesia. The shift is projected to intensify beyond 2025, with Indonesia's share predicted to climb even higher, reaching approximately 70% by 2027. This substantial growth positions Indonesia as the epicenter of Southeast Asia’s energy sector, attracting significant interest from global investors. However, Salomo emphasized that critical questions remain regarding the competitiveness of Indonesian energy projects compared to those in neighboring countries such as Malaysia and Vietnam. Addressing these concerns will be essential to sustain Indonesia's investment momentum and secure its leadership in the region's energy market.
