Jakarta – Minister of Energy and Mineral Resources (MEMR), Bahlil Lahadalia, said Indonesia is strengthening cooperation on bio-energy development with Brazil as part of efforts to accelerate the energy transition and address climate change.
“Brazil has proven itself in utilising low-carbon energy. Its experience can be an important reference for Indonesia in accelerating the clean energy mix development,” Bahlil said while accompanying President Prabowo Subianto’s recent state visit to Brazil.
Bahlil, as stated in the MEMR’s press release on Friday, emphasised that Indonesia views Brazil as a crucial partner in the energy transition. He noted that 88% of Brazil’s electricity supply comes from low-carbon energy sources such as hydropower, wind, solar, and bioenergy.
Brazil’s initiative to develop bioethanol from sugarcane has also made the country the world’s second-largest ethanol producer. This model is considered highly relevant to Indonesia’s current plans to expand the use of biofuels, including through the development of new feedstocks, Bahlil said.
“Bioethanol development is part of the national strategy to create a sustainable and inclusive energy ecosystem. In addition to supporting the energy transition and opening up new economic opportunities in the regional areas, this step also aligns with the potential for collaboration with Brazil, which has long experience in developing bioenergy,” Bahlil said.
During the visit, President Prabowo also emphasised the importance of Brazil’s experience in developing integrated biofuels and the agricultural sector. He stated that Brazil’s innovations in both areas have had a real impact 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 think we are determined to pursue the progress you have achieved,” the President said during the meeting with Brazilian President Luiz Inácio Lula da Silva on Wednesday, 9 July.
Indonesia’s commitment to strengthening bioenergy utilisation was affirmed through the issuance of Minister of Energy and Mineral Resources Regulation Number 4 of 2025 concerning the Business and Utilisation of Biofuels (BBN). This regulation comprehensively regulates the governance of biofuels, including bioethanol, from business to distribution to utilisation in the transportation sector, with incentives for business actors.
“This regulation provides an important foundation for us in strengthening the national bioenergy ecosystem. Collaboration with Brazil in technology, research, and capacity building has the potential to accelerate the implementation of this policy on the ground,” Bahlil added.
The Indonesian government has conducted market testing of bioethanol through Pertamax Green 95, a RON 95 gasoline blended with 5% ethanol (E5), which is now available at several Pertamina gas stations.
The Indonesia-Brazil cooperation has been underpinned by a Memorandum of Understanding (MoU) in the energy and mining sectors since 2008. The scope of cooperation includes upstream-downstream activities, research, training, as well as information exchange and joint projects. (Roffie Kurniawan)
Banner photo: Martin Mecnarowski/shutterstock.com
