Being two countries with similar characteristics despite being on different continents, the potential of Indonesia and Brazil through bilateral channels is still not fully realized. In fact, both countries have equally bright and open future opportunities. Not only a provision to strengthen friendship, similarities must be the starting point for the two countries to work together to lead the transformation from the South of the Earth.
Brazilian President Luiz Inacio Lula da Silva did not hide his enthusiasm when delivering the optimistic message from the pulpit of the Indonesia-Brazil Business Forum 2025 organized by the Indonesian Chamber of Commerce and Industry (Kadin), in collaboration with ApexBrasil in Jakarta, Thursday (23/10/2025). President Lula's visit was one of the agendas in his series of state visits to Indonesia.
The 39th Head of State of the Republic of Brazil explained that with a population of nearly half a billion, the value of bilateral trade between Indonesia and Brazil has only reached USD 6.3 billion over the past two decades.
In fact, as countries with the largest economies in each continent and region, Indonesia and Brazil can increase bilateral trade value opportunities to USD 15 billion-20 billion.
"With Brazil's investment experience in Indonesia since 1968, and Indonesia's investment in Brazil currently reaching USD 1.8 billion, we want to take this strategic partnership to the next level. Although bilateral exchanges are still low, Indonesia remains the fifth largest trading partner and an important import destination for Brazil's top commodities," Lula said.
The key conditions for realizing bilateral investment attractiveness, according to Lula, are the fiscal, legal, political, economic, social stability and economic predictability that investors need. His visit to Indonesia made Lula reflect on his experience in bringing Brazil out of the 2008 Global Financial Crisis, one of which was by expanding foreign capital inflows.
"By diversifying our trade, we came out of the crisis stronger. At that time, I came to Indonesia with about 30 Brazilian business representatives, and decided to sign a strategic partnership with one of the most dynamic growth points in the world. As it turned out, I was not wrong," Lula proudly explains.
A precious opportunity
Going forward, Indonesia and Brazil have two nodes of cooperation that will improve the quality of relations between the two countries. First, cooperation to advance the global bioethanol fuel market between Pertamina and PetroBraz. Second, cooperation in critical mineral processing, with Brazil looking to learn from Indonesia's success in exploring and processing minerals for energy transition needs.
"Indonesia and Brazil will continue to be partners in shaping a sustainable future for the world, as well as a voice for more equitable development from the South of the Earth," he concluded, followed by thunderous applause from all participants.
President Prabowo emphasized that the state visit of the two leaders is evidence of the increasingly close friendly relations between Indonesia and Brazil. According to the president, these relations need to be strengthened through concrete cooperation in various fields that are mutually beneficial for the people of both countries.
"Both of our state visits are proof that the friendly relations between our two countries are getting closer. And that is what we want to strengthen friendly relations and more importantly cooperation in all fields," President Prabowo said.
President Prabowo also congratulated Brazil on its 203rd Independence Day, which was celebrated on September 7, 2025.
The Head of State highlighted the progress of bilateral relations between the two countries, especially in the economic field, and emphasized the commitment to accelerate the formation of the Indonesia-Mercosur Comprehensive Economic Partnership Agreement (CEPA).
ApexBrasil President Jorge Viena emphasized President Lula's commitment. As the 17th bilateral meeting forum, he stated that this year's Indonesia-Brazil Business Forum was special. Not only because of the massive number of invitations, 2,000 participants with 100 representatives of Brazilian entrepreneurs attended, the representation of the business sector that came should be appreciated.
"We have aircraft manufacturers to agribusiness companies in our midst. This has never happened before. Therefore, my presence in your midst carries a mission to emphasize that Brazil today presents a very promising investment climate, very stable, and suitable to support the growth of both countries," Viena explained.
Armed with a"Nova Industria" roadmap similar to Indonesia's Golden 2045 vision, Viena emphasized that currently, Brazil is focused on investing nearly USD 500 million in six strategic sectors, namely nuclear energy, health, research, infrastructure, natural resources, and education. President Lula has expressed his ability to guarantee the implementation of these pillars during his term in office.
"By curbing inflation and promoting manufacturing, productive sectors of the economy in Brazil have created jobs that improve the lives of our people. To maximize that, we are opening the widest possible dialogue with the businesses that will execute these big plans," he added.
Indonesia is ready
Chairman of Kadin Indonesia Anindya R. Bakrie welcomed Brazil's commitment. He agreed that as two countries that have established diplomatic relations for more than 70 years, are members of BRICS and G20, and are leaders of the Earth's South, the quality of bilateral relations between Indonesia and Brazil needs to be further improved.
"We are very proud to sign a memorandum of understanding with ApexBrasil, and look forward to activating and accelerating investment between the two countries, without forgetting the value of inclusion and innovation. On a strong foundation, we hope this partnership forms a collaborative and aligned relationship that can help both countries to progress and develop together," Anindya said.
The two countries' desire to follow up on the existing strategic partnership and Plan of Action 2023-2026 will be followed up with preparations for the preparation of a comprehensive economic partnership agreement (CEPA) in the near future, as Indonesia has done with the European Union, Peru, and Canada.
"The signing of CEPA between Indonesia and Brazil will not only diversify exports and bring welfare benefits to both countries, but also strengthen relations and accelerate the economic growth target of 8% by 2029," said Minister of Investment and Downstream/Head of BKPM Rosan Roeslani in his speech.
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One form of cooperation between the two countries is to strengthen the first node, namely advancing the bioethanol fuel market. In a previous panel session, Pertamina's Director of Business Transformation and Sustainability Agung Wicaksono explained that the potential that Indonesia has developed with the B40 product will be further enhanced through this partnership.
According to Agung, Brazil's experience in developing biofuel based on sugarcane stalks can be a lesson for Indonesia to expand its biofuel sources to other crops, such as sorghum. However, its development requires further exploration and research cooperation between the two countries.
"There is no need to worry, because Brazil's success in developing bioethanol has proven to have an impact on the environment, even saving their Amazon Forest. With bioethanol, it is economically good, technologically proven, and ecologically it will also have a big impact on maintaining climate change," Agung said.
