Enviro News Asia, Jakarta – Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, accompanied President of the Republic of Indonesia, Prabowo Subianto, on a State Visit to Brasília, Brazil, on Wednesday (July 9, local time).
During a bilateral meeting between President Prabowo and Brazilian President Luiz Inácio Lula da Silva, discussions included clean energy, climate resilience, and enhancing bioenergy cooperation—issues that have become increasingly relevant amid global challenges in energy transition and climate change.
Aligned with this agenda, Bahlil emphasized that Indonesia views Brazil as a key partner in the energy transition. “Brazil has proven itself in utilizing low-carbon energy.
Their experience serves as a crucial reference for Indonesia as we accelerate the adoption of clean energy,” Bahlil stated in an official release from the Ministry of Energy and Mineral Resources.
Currently, around 88% of Brazil’s electricity supply comes from low-carbon sources such as hydro, wind, solar, and bioenergy. Brazil’s initiative in developing sugarcane-based bioethanol has made it the world’s second-largest ethanol producer.
This model is seen as highly relevant to Indonesia’s current plan to expand biofuel usage, including through the development of new feedstocks.
“The development of bioethanol is part of our national strategy to build a sustainable and inclusive energy ecosystem. In addition to supporting the energy transition and creating new economic opportunities in rural areas, this step aligns well with potential collaboration with Brazil, which has long-standing experience in bioenergy development,” Bahlil explained.
President Prabowo also highlighted the importance of Brazil’s experience in developing biofuels and its integrated agricultural sector.
According to him, Brazil’s innovations in these fields have had tangible impacts on the economy and energy security, and serve as a valuable example for Indonesia.
“We see your (Brazil’s) success in developing biofuels, and I believe we are determined to pursue the progress you have achieved,” said President Prabowo during the meeting.
Indonesia’s commitment to strengthening bioenergy utilization is reaffirmed by the issuance of Ministerial Regulation No. 4 of 2025 on the Development and Utilization of Biofuels (BBN).
The regulation comprehensively governs the management of biofuels, including bioethanol, covering development, distribution, and utilization in the transportation sector, while also offering incentives for industry players.
The Indonesian government has conducted market testing of bioethanol through the Pertamax Green 95 product, a RON 95 gasoline blended with 5% ethanol (E5), which is now available at several Pertamina gas stations.
For context, Indonesia and Brazil have maintained a Memorandum of Understanding (MoU) in the energy and mining sectors since 2008.
The agreement covers upstream-downstream activities, research, training, information exchange, and joint projects. This state visit is expected to revitalize the technical implementation of the MoU.
With bilateral trade reaching USD 6.34 billion in 2024, this visit is expected to deepen investment and technology transfer in the energy sector, support the green transition mission, and strengthen Indonesia’s position as a strategic global partner in addressing climate change. (*)
