HANAN NUGROHO Indonesia, which to a certain extent is still a centrally planned economy, is actively implementing regulatory reforms. The current national planning process is based on the 2004 National Development Planning System Law. According to the law, a comprehensive Long-Term Development Plan, spanning 2005 through to 2025 was established first, then - combined with vision and mission of the elected president - a national Medium-Term Development Plan (RPJM) is derived. The RPJM serves as reference for sectors and regional strategic planning developed by ministries and regional governments. From this mid-term development plan, a government work plan (RKP) is determined annually within each ministry. The mechanics for developing the current RPJM is similar to that of the six five year development plans implemented during the Soeharto era. Under the system, goals are targeted, supporting policies are developed and government funds are allocated. The government is assumed to have a significant role in guiding development and in providing funding. Central planning, however, is effective in environments where all factors are under the direct control of government institutions and where those institutions obey instructions. This is no longer the case for energy planning and policy coordination in Indonesia. Following the fall of President Soeharto in 1998, Indonesias political landscape and legislations have undergone major reforms, started by the introduction of a regional autonomy law in 1999 that gave authority to provincial governments to regulate and manage many affairs in their regions, including the energy sector. The autonomy law was followed by a 1999 law balancing the fiscal relationship between the central and regional governments, realigning revenue sharing from energy and mineral resources sectors in favour of the provincial administrations. Since then, we have moved with more decentralisation and privatisation agendas in energy sector in line with the reforms of other sectors. Those are changing Indonesia toward a more democratic society with greater reliance on liberalised market. State-owned oil and gas company Pertamina, according to the 2001 Oil & Gas Law, no longer has the responsibility to serve as the government representative to fulfil our demand for oil fuels. Likewise, the 2009 Electricity Law has reduced state-owned electricity company PT PLN to a mere player in the countrys electricity industry and asked the regional governments to prepare their plan for development in the sector. Next the 2003 Geothermal Law and the 2009 Mining Law gave greater authority to regional governments in managing geothermal and mining issues in their respective areas. State-owned coal company Bukit Asam and the state-owned gas company PGN are now public companies listed on the Indonesia Stock Exchanges, governed more by their stockholders than directly by the government. In addition, we have to maintain a balance between soaring domestic demand and pressure to export our energy commodities, coal and natural gas in particular. Energy planning is now facing larger challenges stemming from changes in legislation, governments, the role of former state-owned companies and soaring demand both from the domestic and export markets. Nowadays, not only must energy planners have appropriate knowledge on energy technology and the economy, but they must also have a better understanding and be more adaptive to change, and be able to perform detailed analysis on the behaviour of energy markets, including on how actors respond to particular policy interventions. So far, energy planning in Indonesia has been carried out separately among types of energy without integrating them appropriately. This puts heavy emphasis on production/supply side and seems to neglect the demand side. Under the 2007 Energy Law, the National Energy Master Plan is to be formulated by the newly created National Energy Council. Accordingly, the provincial and district governments are mandated to prepare their master plan for local and regional energy. Given the fast changing environment, these tasks are surely challenging. Having high-quality energy planning, across all regions in Indonesia, has a long way to go. However, a better energy planning solely is not enough. They need good coordination among actors and stakeholders for the implementation of the planning to deliver high- quality results. The Jakarta Post