Brazil has officially signed a major biofuels cooperation pact with Indonesia during a high-level meeting in Jakarta on December 7, 2025, marking one of the most significant bilateral energy agreements of the year. The new pact is centered on expanding the global trade in ethanol and Sustainable Aviation Fuel (SAF). Brazil is already a world leader in this sector due to its highly mature, sugarcane-based biofuel industry, and this agreement is designed to leverage that expertise internationally.
A key component of the agreement is the transfer of Brazilian processing technologies, which will allow Indonesian refineries to establish large-scale production of second-generation ethanol using agricultural waste (cellulosic biomass). This technological adoption is expected to significantly boost Indonesia’s domestic biofuel output. Brazil’s Ministry of Mines and Energy confirmed that a joint task force will begin work in January 2026 to map specific cross-investment opportunities, with the ambitious goal of doubling bilateral biofuel trade within five years.Officials from both nations emphasized that the move strengthens the Global South’s position in the international clean-energy transition. By exporting its sustainable fuel standards and technology, Brazil opens new pathways for its industry to grow internationally, especially as aviation regulators worldwide continue to tighten decarbonization rules and increase demand for SAF.
