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Indonesia Turns to Brazil as Model for Bioethanol and Clean Energy Transition

Heru Andriyanto
July 10, 2025 | 8:28 pm
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President Prabowo Subianto shakes hands with Brazilian President Luiz Inacio Lula da Silva during their meeting at the Palacio do Planalto, Brasilia City, Wednesday, July 9, 2025. (Photo courtesy of the Energy and Mineral Resources Ministry)
President Prabowo Subianto shakes hands with Brazilian President Luiz Inacio Lula da Silva during their meeting at the Palacio do Planalto, Brasilia City, Wednesday, July 9, 2025. (Photo courtesy of the Energy and Mineral Resources Ministry)

Brasília. Indonesia is turning to Brazil for inspiration in accelerating its transition to clean energy and achieving greater energy independence, Energy and Mineral Resources Minister Bahlil Lahadalia said during President Prabowo Subianto’s state visit to Brazil on Wednesday.

Speaking after accompanying President Prabowo in a bilateral meeting with Brazilian President Luiz Inácio Lula da Silva in Brasília, Bahlil stressed the importance of Brazil as a strategic partner in renewable energy and biofuel development.

“Brazil has demonstrated global leadership in low-carbon energy use. Their experience serves as a vital reference point for Indonesia as we work to boost our clean energy mix,” Bahlil said in a statement.

Bioethanol Development
He noted that 88 percent of Brazil’s electricity supply comes from low-carbon sources such as hydro, wind, solar, and bioenergy. Brazil is also the world’s second-largest producer of ethanol, primarily derived from sugarcane -- an approach Indonesia sees as highly relevant to its own biofuel ambitions.

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“The development of bioethanol is part of Indonesia’s national strategy to build a sustainable and inclusive energy ecosystem,” Bahlil explained. “Beyond supporting the energy transition and creating new economic opportunities in rural areas, this also opens doors for deeper cooperation with Brazil, which has decades of experience in bioenergy.”

President Prabowo echoed these sentiments, pointing out Brazil’s success in biofuels and integrated agriculture as a model for Indonesia’s own development goals.

“We admire your achievements in biofuel development. Indonesia is determined to follow in your footsteps,” Prabowo told President Lula during the meeting.

Indonesia recently underscored its commitment to bioenergy by issuing Ministerial Regulation No. 4 of 2025 on the Development and Utilization of Biofuels. The policy lays out a comprehensive framework for bioethanol governance, including production, distribution, and use in the transportation sector, while also offering incentives to encourage industry participation.

“This regulation is a crucial foundation for strengthening our national bioenergy ecosystem,” Bahlil said. “There’s strong potential for collaboration with Brazil in technology, research, and capacity-building to accelerate policy implementation on the ground.”

Indonesia Turns to Brazil as Model for Bioethanol and Clean Energy Transition
President Prabowo Subianto introduces Energy Minister Bahlil Lahadalia to Brazilian President Luiz Inacio Lula da Silva at the Palacio do Planalto, Brasilia City, Wednesday, July 9, 2025. (Photo courtesy of the Energy and Mineral Resources Ministry)

The visit comes as bilateral trade between Indonesia and Brazil reached $6.34 billion in 2024, and is expected to open new opportunities for clean energy investment, technology transfer, and climate resilience partnerships.

One personal moment stood out for Bahlil during the visit. When President Prabowo introduced him to President Lula at the Palácio do Planalto, Lula embraced him warmly -- an act Bahlil described as deeply meaningful and symbolic of the growing friendship between the two countries.

President Prabowo’s trip to Brazil coincided with his participation in the BRICS Summit in Rio de Janeiro earlier this week, which focused on the theme “Environment, COP 30, and Global Health.” The summit addressed global cooperation amid escalating climate and health system challenges.

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