Indonesia and Brazil have agreed to strengthen cooperation in the bioenergy sector, following President Prabowo Subianto’s state visit to Brazil. 

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that bioethanol development is part of Indonesia’s national strategy to build a sustainable and inclusive energy ecosystem. 

“In addition to supporting the energy transition and creating new economic opportunities at the regional level, this step aligns well with the potential for collaboration with Brazil, a country with long-standing experience in developing bioenergy,” said Bahlil in an official press release on Thursday, July 10. 

Bahlil emphasized that Indonesia sees Brazil as an important partner in the energy transition, highlighting the country’s proven track record in utilizing low-carbon energy. 

“Their experience serves as a crucial reference point for Indonesia as we accelerate the integration of clean energy into our national energy mix,” he added. 

According to the Ministry of Energy and Mineral Resources, 88% of Brazil’s electricity supply comes from low-carbon sources such as hydropower, wind, solar, and bioenergy. 

Brazil’s initiative to produce bioethanol from sugarcane has also positioned the country as the world’s second-largest ethanol producer. This model is seen as highly relevant to Indonesia’s current efforts to expand the use of biofuels, including the development of alternative raw materials. 

The Indonesian government has previously issued regulations to support the use of bioenergy, notably through the enactment of Ministerial Regulation No. 4 of 2025 on the Development and Utilization of Biofuels (BBN). 

This regulation provides comprehensive governance over biofuel production and distribution, including bioethanol, as well as its application in the transportation sector, accompanied by incentives for industry stakeholders. 

“This regulation forms a crucial foundation for strengthening the national bioenergy ecosystem. Cooperation with Brazil in the areas of technology, research, and capacity building offers significant potential to accelerate the policy’s implementation on the ground,” Bahlil stated. 

Indonesia has already conducted market trials for bioethanol through the Pertamax Green 95 product, a RON 95 gasoline blended with 5% ethanol (E5), which is now available at selected Pertamina fueling stations. 

President Prabowo also underlined the importance of Brazil’s experience in developing biofuels and integrated agriculture. He noted that Brazil’s innovation in both sectors has made a tangible impact on the economy and energy security and serves as a valuable example for Indonesia. 

“We recognize your success in developing biofuels, and I believe we are determined to pursue the progress you have achieved,” Prabowo remarked. 

In addition to bioenergy, both governments discussed broader issues related to clean energy and climate resilience, in light of mounting global challenges in the energy transition and climate change. 

The Indonesian government hopes that this visit will serve as a catalyst for deeper investment and technology transfer in the energy sector, support the country’s green transition goals, and strengthen Indonesia’s role as a strategic global partner in addressing climate change. 

As a point of reference, Indonesia and Brazil have maintained a Memorandum of Understanding (MoU) on cooperation in energy and mining since 2008. The agreement covers upstream and downstream activities, research, training, information exchange, and joint projects. The current state visit is expected to revive the technical implementation of this long-standing MoU. 

This article is published in partnership with Katadata 

Original article here