The Indonesia state-owned electricity firm (Perusahaan Listrik Negara or PLN) planned to boost the use of renewable energy for electricity to 20 percent by the next eight years from the current level of 11 percent, a statement from the company said here on Monday.

The firm would persistently encourage and support development of renewable energy, such as hydro power, geothermal, solar energy and biomass, for electricity.

One of the examples was the firm project in Sumba island of East Nusa Tenggara, where the electricity facility at the whole island would be generated by hydro power.

Many of Indonesia power plants are still generated by fuel and coal, whose reserve keep declining.

Going forward, Indonesia plans to rely more on renewable energy as the country's fossil fuel reserve has dwindled while the energy demand keeps rising by over 7 percent annually.

The archipelago country has abundant of renewable energy sources, such as water, bio-fuel sources, and solar energy.

Indonesia has struggled to boost oil production which has been dwindled in recent years due to aging wells and lacking of fresh investment.

Indonesia imports both crude oil and refined products as the country's oil production has started to decline since 1998 and led Indonesia exit from OPEC in 2009.

Indonesia's oil production in 2011 is forecast to reach an average of 904,000 barrel per day, lower than the target of 945, 000 barrel per day, due to technical problem and extreme weather, Raden Priyono head of oil and gas regulator BP Migas said.