"System" in this context means "closed system." So ... yeah, both momentum and energy are in all cases conserved. What you appear to be saying here is that momentum/energy can be transferred to other entities in a larger system. True but not relevant. For instance, when (for instance) a sliding object comes to a stop, it's transferring momentum to the floor, and in turn to the Earth (or presumably to Roshar or Sel). (We'll ignore rotational movement for the time being.)
In any interaction, momentum and energy are conserved.