Strategic Visit to Brazil: Indonesia Unveils Ambition to Become a Global Bioenergy Giant

President Prabowo Subianto’s state visit to Brasília on Wednesday, July 9, 2025, has become a major focal point of international diplomacy. Accompanied by the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, the bilateral meeting with Brazilian President Luiz Inácio Lula da Silva addressed critical issues: clean energy, climate resilience, and the strengthening of bioenergy cooperation.

Brazil as the Bioenergy Mentor: Indonesia as the Fast Learner

Minister Bahlil emphasized that Indonesia views Brazil as a key partner in accelerating the energy transition. “Brazil has proven itself in utilizing low-carbon energy; their experience serves as an essential reference for Indonesia as we accelerate our clean energy mix,” Bahlil stated.

Brazil’s credentials are formidable: 88% of its electricity supply comes from low-carbon sources. Most notably, Brazil’s initiative in developing sugarcane bioethanol has positioned it as the world’s second-largest ethanol producer. This model is highly relevant to Indonesia’s plans to expand biofuel usage, including developing new feedstocks like sugar palm (aren) bioethanol.

“Developing bioethanol is part of a national strategy to create a sustainable and inclusive energy ecosystem,” Bahlil explained. This signals Indonesia’s readiness to adopt Brazil’s success in converting biomass into high-value energy.

President Prabowo’s Commitment: Chasing Brazil’s Biofuel Success

President Prabowo Subianto underscored the importance of Brazil’s integrated agricultural and biofuel sectors. He noted that Brazil’s innovation in these fields has delivered tangible impacts on their economy and energy security.

“We see your success in developing biofuels, and we are determined to catch up to the progress you have achieved,” President Prabowo stated during the meeting, affirming Indonesia’s ambition to match—and eventually surpass—Brazil’s bioenergy milestones.

Policy Foundations and Technical Collaboration

Indonesia’s commitment is codified in ESDM Ministerial Regulation No. 4 of 2025 regarding the Management and Utilization of Biofuels (BBN). This comprehensive regulation governs the biofuel ecosystem, including bioethanol, from production and distribution to transport sector incentives.

“This regulation is a vital foundation for strengthening our national bioenergy ecosystem. Collaboration with Brazil in technology, research, and capacity building is highly potential to accelerate the implementation of this policy,” Bahlil added.

Indonesia has already begun market trials for bioethanol through Pertamax Green 95 (an E5 blend), which is now gradually becoming available at Pertamina stations. With bilateral trade reaching USD 6.34 billion in 2024, this visit is expected to deepen investment and technology transfer, supporting Indonesia’s mission to become a strategic global leader in the fight against climate change.