ASIATODAY.ID, BRASÍLIA — The Government of Indonesia is strengthening its commitment to clean energy transition through strategic international cooperation.
During President Prabowo Subianto’s state visit to Brazil, July 9, 2025, the development of bioenergy emerged as a key agenda in a bilateral meeting with Brazilian President Luiz Inácio Lula da Silva.
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, who accompanied President Prabowo, emphasized that Brazil is a key partner in accelerating Indonesia’s shift toward clean energy, particularly in the development of bioethanol and low-carbon energy solutions.
“Brazil has demonstrated remarkable success in bioenergy utilization. Their experience offers valuable insights for Indonesia, which is currently expanding its biofuel program as part of our national energy strategy,” said Bahlil.
Brazil is globally recognized as a leader in renewable energy, with 88% of its electricity sourced from low-carbon energy, including hydropower, wind, solar, and bioenergy. The country is also the world’s second-largest producer of ethanol, primarily derived from sugarcane.
Indonesia’s commitment to expanding biofuel adoption aligns with its recently issued Ministerial Regulation No. 4/2025 on Biofuels (BBN). This regulation governs the upstream-to-downstream management of biofuels, including incentives for industry players and guidelines for its use in the transportation sector.
“Collaboration with Brazil in technology, research, and capacity-building is essential to accelerating the implementation of this policy,” Bahlil added.
President Prabowo also acknowledged Brazil’s innovation in developing integrated biofuel and agricultural sectors, stating that Indonesia is eager to learn and deepen cooperation in these areas.
“We are inspired by Brazil’s success and are determined to achieve similar progress in ensuring our national energy resilience,” said President Prabowo.
Indonesia has already initiated market testing of Pertamax Green 95, a fuel blending RON 95 gasoline with 5% ethanol (E5), as part of its roadmap toward clean energy transition in the transportation sector.
Indonesia and Brazil have maintained energy cooperation since 2008 through a Memorandum of Understanding (MoU) covering joint research, training, and project implementation. This state visit is expected to reinvigorate the technical implementation of the MoU and strengthen bilateral energy collaboration.
With bilateral trade reaching USD 6.34 billion in 2024, the enhanced partnership in the energy sector is poised to deepen investment flows, accelerate technology transfer, and position Indonesia as a strategic global partner in advancing the green energy transition and tackling climate change. (AT Network)
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