Indonesia Explores Bioenergy Cooperation with Brazil

TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia accompanied President Prabowo Subianto on a state visit to Brasilia, Brazil, on Wednesday, July 9, 2025. During a bilateral meeting with Brazilian President Luiz Inacio Lula da Silva, the two countries discussed various strategic issues, including how to strengthen their cooperation in bioenergy as part of their transition to clean energy.

On this occasion, Bahlil emphasized the importance of collaborating with Brazil, which is considered to have successfully built a low-carbon energy system. Currently, approximately 88 percent of Brazil's electricity supply comes from renewable energy sources, including hydroelectricity, wind power, solar energy, and bioenergy.

"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," said Bahlil as quoted from a written statement on Friday, July 11, 2025.

He stated that one of Indonesia's concerns is Brazil's success in producing ethanol from sugarcane. He said that, at present, Brazil is the world's second-largest producer of ethanol.

According to him, this approach aligns with Indonesia's national strategy of expanding the use of biofuels. "The development of bioethanol is not just an energy issue, but also part of efforts to build a sustainable energy ecosystem and create new economic opportunities, especially in the regions," he said.

He added that the government has issued Ministerial Regulation No. 4 of 2025 concerning the Development and Utilization of Vegetable Fuels (BBN). This regulation oversees the comprehensive management of biofuels, from production to distribution, and offers incentives to businesses, particularly those in the transportation sector.

The Chairperson of the Golkar Party assessed that this step is strengthened by the market test of Pertamax Green 95, a blend of RON 95 gasoline with 5 percent ethanol (E5), which has become available at several Pertamina gas stations. Bahlil mentioned that the opportunity for collaboration with Brazil is wide open, especially in terms of technology transfer, joint research, and capacity building.

This collaboration is expected to accelerate the implementation of bioenergy policies in Indonesia. "We need to learn from Brazil, from technology to its business model. This concrete collaboration is important for the energy transition to proceed more quickly and evenly," he said.

Indonesia and Brazil have been cooperating in the field of energy and mining since 2008 through a Memorandum of Understanding (MoU). However, Bahlil said that the technical implementation of the agreement is still not optimal.

With bilateral trade reaching US$6.34 billion in 2024, Bahlil hopes that this state visit can revitalize the technical agendas within the MoU and deepen investment and technology transfer in the clean energy sector. "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," he said.

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