Indonesia to Invest in Brazil-Led USD 125 Billion Forestry Fund

Indonesia has pledged to contribute financially to the Brazil-led USD 125 billion global forestry fund, a commitment made by President Prabowo Subianto during his meeting with Brazilian President Luiz Inácio Lula da Silva on Thursday, October 23, 2025. 

President Lula is currently in Jakarta for a three-day visit — his first trip to Southeast Asia’s largest economy since 2008. Brazil has been promoting the Tropical Forest Forever Facility (TFFF), a global initiative offering financial incentives to countries that commit to halting deforestation. 

Lula plans to officially launch the TFFF at the upcoming United Nations Climate Conference (COP30) in Belém, Brazil, from November 6 to November 21, 2025, which President Prabowo will not attend. Despite his absence, Indonesia — home to one of the world’s largest tropical forest areas — has promised to contribute an amount equal to Brazil’s own USD 1 billion investment in the initiative. 

“Brazil has established an investment fund that aims to conserve tropical forests. Brazil pioneered this movement, and we support it. We will commit whatever amount Brazil has invested in TFFF. Indonesia will invest there,” Prabowo said at a joint press conference. 

The TFFF seeks to create a USD 125 billion global investment fund to provide tropical countries with a permanent income stream in exchange for forest protection. Of this total, USD 25 billion is expected from sovereign investors and the remaining USD 100 billion from private capital. The fund will allocate 20% of all payments to indigenous communities. 

As of the end of September 2025, six tropical forest countries — Brazil, Colombia, Ghana, Congo, Indonesia, and Malaysia — had joined the initiative. Potential donor countries include Germany, the United Arab Emirates, France, Norway, and the United Kingdom. The World Bank has agreed to act as the fund’s trustee, overseeing the transfer of capital to participating nations and managing investments through international fund managers. 

Indonesia possesses approximately USD 126.7 million hectares of tropical forest, according to government data. 

Source: Jakarta Globe 

Indonesia to Introduce Mandatory Bioethanol-Blended Gasoline in 2027, Minister Says

Indonesia plans to introduce E10 gasoline — containing 10% bioethanol — by 2027 as part of its efforts to reduce dependence on imported fossil fuels, Energy Minister Bahlil Lahadalia said on Friday, October 24, 2025. 

The government aims to expand the domestic use of biofuels made from palm oil and sugarcane to strengthen national energy independence. However, limited ethanol supply has delayed the rollout of a mandatory bioethanol blend. 

Minister Bahlil estimated that the program would require around 1.4 million kiloliters (kL) of bioethanol annually. 

“We plan to source all the ethanol from domestic markets,” he told reporters. 

He added that cassava, corn, and sugarcane could also serve as alternative feedstocks for ethanol production. 

Indonesia currently has the capacity to produce 303,325 kL of bioethanol per year, but actual output stood at 160,946 kL in 2024, with 11,829 kL imported, according to data from the Indonesian Association of Methylated Spirits and Ethanol Producers. 

Domestic demand for bioethanol reached 125,937 kL last year, while exports totaled 46,839 kL. 

Source: Reuters 

Government Lowers Airfares by up to 14% for Year-End Holidays

The government has announced a 13–14% reduction in domestic economy-class airfares for the upcoming year-end holiday period, aiming to sustain household spending and support economic growth. 

The discounted fares apply to travel between December 22, 2025, and January 10, 2026, and can be booked from October 22, 2025, through the end of the period, the Transportation Ministry said in a statement on Tuesday, October 21, 2025. 

Transportation Minister Dudy Purwagandhi explained that the measure aligns with President Prabowo Subianto’s directive to strengthen national economic growth in the second half of the year. 

“We want to ensure that all people can enjoy air transportation, especially during the Christmas 2025 and New Year 2026 period,” Dudy said. 

The airfare reduction is supported by several ministerial policies: 

• Transportation Ministerial Decree No. 50/2025 reduces fuel surcharges for economy-class domestic flights. 
• Finance Ministry Regulation (PMK) No. 71/2025 cuts Value-Added Tax (VAT) for domestic scheduled flights in economy class by 6 percentage points. 
• A Directorate General of Air Transportation decree halves non-tax state revenue (PNBP) airport service fees. 

Additionally, the price of aviation turbine fuel (avtur) will be reduced at 37 airports, while extended airport operating hours will accommodate the expected surge in passengers. 

The announcement follows the government’s fourth stimulus package of 2025, introduced in September, which includes various incentives to stimulate travel and retail consumption. 

The same 13–14% airfare reduction was implemented during Idul Fitri, the summer school holidays, and a 10% cut was applied in the 2024 year-end season. 

The Ministry previously identified several factors contributing to high ticket prices — including higher reactivation costs for grounded aircraft, supply chain disruptions in spare parts, and currency depreciation affecting leasing costs. 

Civil Aviation Director Lukman F. Laisa said the government continues to explore regulatory adjustments to stabilize airfares, such as revising upper and lower fare limits to prevent predatory pricing while ensuring affordability for passengers. 

Source: The Jakarta Post