Indonesia and Brazil have agreed to collaborate on the development of environmentally friendly, ethanol-based renewable energy, Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia announced.
Bahlil said the memorandum of understanding for the partnership was signed in the presence of President Prabowo Subianto and Brazilian President Luiz Inácio Lula da Silva at the Merdeka Palace in Jakarta on Thursday. “This cooperation aims to promote the development of new renewable energy, particularly in transitioning away from gasoline,” Bahlil said, as quoted by Antara on Friday, October 24, 2025.
He noted that Brazil has successfully implemented a nationwide E30 ethanol-gasoline blend, and in some states, the blend has reached E100, pure ethanol with no gasoline content.
Indonesia, he added, plans to follow Brazil’s example by introducing an E10 ethanol blend by 2027–2028 and gradually advancing to E20 in the future. The initiative is intended not only to produce cleaner energy but also to reduce the country’s reliance on imported fossil fuels.
Bahlil, who also chairs the Golkar Party, said Indonesia’s achievements in the palm oil–based biodiesel program, from B10 to B40, have inspired similar efforts in the gasoline sector using ethanol. “For biodiesel, we use CPO; for gasoline, we’ll use ethanol derived from corn, cassava, and sugarcane,” he explained.
The minister further emphasized that ethanol development would help raise farmers’ incomes and strengthen downstream industries in the agricultural sector. The program, he said, is also expected to spur new economic growth in regions producing raw materials.
“This initiative will take place in the regions, not in Jakarta. It will help reduce imports, increase people’s incomes, and lower pollution through better fuel quality,” Bahlil said.
