Indonesia-Brazil Economic Cooperation: Ushering in a New Era with a USD 2.8 Billion Investment

Jakarta, INTI – Indonesia and Brazil have strengthened their economic ties with the signing of a Memorandum of Understanding (MoU) at the Indonesia-Brazil Business Forum held at the Copacabana Palace in Rio de Janeiro. This cooperation involves an investment worth USD 2.8 billion, covering a range of strategic sectors, including finance, digital technology, mining, energy, livestock, and the aerospace industry. The signing ceremony was witnessed by Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, alongside business leaders and high-ranking officials from both countries.

Economic Synergy to Enhance Mutual Prosperity

President of the Republic of Indonesia, Prabowo Subianto, who attended the business forum, expressed strong optimism about the potential for cooperation between the two nations. In his speech, President Prabowo highlighted that Indonesia and Brazil share many similarities, which can serve as a foundation for developing a closer partnership. Both countries have large populations, abundant natural resources, and a culture full of enthusiasm for progress.

“I want Indonesia to follow the industrial development that Brazil has successfully undertaken,” said President Prabowo. He added that Indonesia needs to catch up in the industrial sector, which is one of the key drivers of growth for advanced economies worldwide.

Focus on Cooperation in Energy and Food Sectors

President Prabowo also emphasized the importance of prioritizing specific sectors for cooperation, particularly energy, food, industrial development, and maritime affairs. In the energy sector, both countries have agreed to collaborate on renewable energy, focusing on biofuels and ethanol derived from plant-based sources. This cooperation is expected to support Indonesia's transition to more environmentally friendly energy, in line with the government's commitment to reducing carbon emissions.

In the food sector, Indonesia, which is striving to increase protein consumption among its population, is leveraging this opportunity to promote its Program Makan Bergizi Gratis (Free Nutritional Meal Program) aimed at improving the quality of life for Indonesians, especially in regions with limited access to nutritious food.

Enhancing Indonesia’s Fisheries Capacity

President Prabowo also highlighted Indonesia’s vast potential in the fisheries sector, where the country ranks among the top three in the world. However, Indonesia still faces a shortage of around 40,000 large-capacity fishing vessels. To address this, President Prabowo urged collaboration in the aerospace industry, involving companies such as PT Dirgantara Indonesia and Embraer Brasil, to produce vessels and aircraft that could support Indonesia's fisheries and maritime industries.

Brazil as a Strategic Economic Partner for Indonesia

Brazil is one of Indonesia’s key strategic economic partners. In 2023, the total trade value between the two countries reached USD 6 billion. Key commodities in trade include vegetable oil, rubber, agricultural products, and meat. With this deeper cooperation in various sectors, both countries aim to continue developing their economic relationship in a positive direction.

“Brazil is an important partner for Indonesia in expanding market access for Indonesian products such as vegetable oil and rubber, as well as strengthening trade relations in energy and agriculture,” said Airlangga Hartarto, Indonesia's Coordinating Minister for Economic Affairs, during the forum.

Participation of Key Officials at the Business Forum

The business forum was also attended by several senior officials from both countries, demonstrating their strong commitment to deepening economic ties. Among those present were Indonesian Minister of Finance Sri Mulyani Indrawati, Minister of Foreign Affairs Retno Marsudi, Special Envoy of the President for Climate Change and Energy Hashim Djojohadikusumo, Deputy Minister of Finance Thomas Djiwandono, Cabinet Secretary Teddy Indra Wijaya, and Indonesia's Ambassador to Brazil Y.M. Edi Yusup.

Also attending was the Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), Anindya Novyan Bakrie, who played an active role in strengthening cooperation between the private sectors of both countries to boost investment and economic partnership.

New Opportunities for Business Leaders in Various Sectors

For Indonesian entrepreneurs, this forum presents significant opportunities to increase exports to the Brazilian market, particularly in sectors where Indonesia excels, such as agricultural products, vegetable oil, and the creative industries. Additionally, the opportunity to collaborate in digital technology and renewable energy development is expected to have a long-term positive impact on Indonesia’s economy.

On the other hand, Brazil stands to benefit from this cooperation by gaining access to Indonesia’s vast market and exploring investment opportunities in strategic sectors that are currently developing in Indonesia, such as renewable energy, infrastructure, and manufacturing.

Optimizing Cooperation to Strengthen the Economy

The signing of the Memorandum of Understanding between Indonesian and Brazilian business leaders at the Copacabana Palace marks a significant step toward enhancing economic relations between the two nations. Through closer cooperation in various sectors, Indonesia and Brazil can enjoy mutual benefits, create new investment opportunities, and generate employment. With the potential both countries possess, this partnership could become a cornerstone for advancing more sustainable and prosperous economies.