economy

Accompanying The President To Brazil, The Minister Of Energy And Mineral Resources Explores Cooperation In Bioenergy

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, is exploring collaboration to enhance the utilization of bioenergy while accompanying the President of Indonesia, Prabowo Subianto, on a state visit to Brasilia, Brazil, on Wednesday (July 9) local time.

During the bilateral meeting between President Prabowo and Brazilian President Luiz Inacio Lula da Silva, topics such as clean energy, climate resilience, and the strengthening of bioenergy cooperation were discussed amidst the growing global challenges related to energy transition and climate change.

In line with this agenda, Bahlil stated in Jakarta on Thursday that Indonesia views Brazil as a crucial partner in the energy transition.

"Brazil has proven itself in the utilization of low-carbon energy, and their experience serves as an important reference for Indonesia, which is accelerating its clean energy mix," Bahlil remarked during the visit.

Currently, 88 percent of Brazil's electricity supply comes from low-carbon energy sources, such as hydropower, wind, solar, and bioenergy.

Brazil's initiative in developing bioethanol from sugarcane has also positioned the country as the second-largest ethanol producer in the world.

The model is considered highly relevant to Indonesia's current plans to expand the use of biofuels, including the development of new raw materials.

"The development of bioethanol is part of the national strategy to create a sustainable and inclusive energy ecosystem. In addition to supporting the energy transition and opening new economic opportunities in the regions, this step is also in line with the potential for cooperation with Brazil, which has extensive experience in developing bioenergy," Bahlil stated further.

President Prabowo emphasized the significance of Brazil's experience in the development of biofuels and the integrated agricultural sector.

He noted that Brazil's innovations in both areas have had a tangible impact on the economy and energy resilience, serving 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," President Prabowo remarked during the meeting.

Indonesia's commitment to strengthening the utilization of bioenergy is underscored by the issuance of Minister of Energy and Mineral Resources Regulation Number 4 of 2025 concerning the Management and Utilization of Biofuels (BBN).

This regulation comprehensively governs biofuel management, including bioethanol, from production and distribution to its use in the transportation sector, with incentives for business actors.

This regulation serves as a crucial foundation for us to strengthen the national bioenergy ecosystem. Collaboration with Brazil in the fields of technology, research, and capacity building holds significant potential to expedite the implementation of this policy in the field," stated Bahlil.

The Indonesian government has conducted market testing for bioethanol through the Pertamax Green 95 product, which is RON 95 gasoline blended with 5 percent ethanol (E5), now available at several Pertamina gas stations.

On another note, the Indonesia-Brazil partnership has been formalized in a memorandum of understanding (MoU) in the energy and mining sectors since 2008. This encompasses upstream and downstream activities, research, training, as well as information exchange and joint projects.

President Prabowo's state visit is expected to reactivate the technical implementation of the MoU.

With a backdrop of bilateral trade reaching 6.34 billion USD in 2024, the momentum of this visit is anticipated to deepen investment and technology transfer in the energy sector, support the green transition mission, and strengthen Indonesia's position as a global strategic partner in addressing climate change.

Tag: Bahlil Lahadalia Bioenergy ESDM