The government targets a New and Renewable Energy (NRE) mix to reach 23% in 2025, increasing to 31% by 2050. This will make it the largest energy mix compared to others. Meanwhile, the petroleum energy mix will decrease to around 20% by 2050.
The growing population is driving increased energy demand, particularly for transportation and electricity. Simultaneously, the declining production of fossil fuels (non-renewable) forces the government to import petroleum to meet domestic needs.
To anticipate the increasingly limited national fossil fuel reserves and the growing energy needs of the population, the government is promoting the use of NRE. This includes utilizing geothermal, solar, bioenergy, hydropower, and wind power plants. Furthermore, the government is implementing a biofuel policy (B-20), which involves mixing diesel fuel with palm oil to reduce fossil fuel consumption.
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