Indonesia and Brazil are exploring deeper cooperation in bioenergy as part of their broader commitment to clean energy transition, officials said following a state visit by Indonesian President Prabowo Subianto to Brazil this week.
Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia, who accompanied President Prabowo during the July 9 bilateral meeting with Brazilian President Luiz Inacio Lula da Silva, said both sides discussed strategic energy partnerships, particularly Brazil’s experience with renewable energy systems and bioethanol production.
Brazil currently sources approximately 88% of its electricity from renewable energy, including hydropower, wind, solar, and bioenergy, positioning it as a reference point for developing countries like Indonesia.
“Brazil has provided tangible evidence in the development of clean energy. Their experience is an important reference for Indonesia, which is accelerating the use of renewable energy sources,” Bahlil said in a written statement.
One area of focus is ethanol production from sugarcane. Brazil is the world’s second-largest ethanol producer, and Indonesian officials see significant potential in adopting similar technology to support national biofuel strategies. A new regulation introduced earlier this year — Ministerial Regulation No. 4 of 2025 — is designed to manage the development and distribution of biofuels in Indonesia and encourage investment through targeted incentives, particularly in transportation.
The Indonesian government has also launched a market trial of Pertamax Green 95, a fuel blend containing 5% ethanol (E5), at selected Pertamina stations as part of its transition strategy.
Bahlil said collaboration opportunities with Brazil remain open in areas such as technology transfer, joint research, and workforce training. He emphasized the need for Indonesia to draw from Brazil’s expertise, particularly in business models and technology deployment, to speed up implementation of its energy transition plans.
The two countries have had an energy and mining cooperation framework in place since 2008 under a memorandum of understanding (MoU), but the technical implementation has yet to be fully realized.
With bilateral trade reaching $6.34 billion in 2024, Indonesian officials said this latest state visit could help reinvigorate cooperation under the MoU and attract investment in clean energy infrastructure.
“This visit is a strategic step for Indonesia to strengthen its global role in facing the challenges of climate change, as well as to strengthen its position as a strategic partner in the global energy transition mission,” Bahlil added.
