The bilateral meeting between the President of the Republic of Indonesia, Prabowo Subianto, and the President of the Federative Republic of Brazil, Luiz Inácio Lula da Silva, at the Merdeka Palace in Jakarta on October 23, 2025, marked a new chapter in diplomatic relations between the two major powers in the global south. In the warm meeting, the two leaders agreed to strengthen their strategic partnership by signing eight memorandums of understanding (MoUs) covering sectors such as energy, agriculture, technology, defense, and education. This meeting was not merely a diplomatic ceremony, but a symbol of the revival of South-South Cooperation diplomacy amidst shifts in the global economic order.
Momentum of 72 Years of Diplomatic Relations
President Lula da Silva’s state visit to Indonesia was a reciprocal visit by President Prabowo Subianto to Brasilia in July 2025. Just three months apart, this diplomatic intensity demonstrates the strategic importance of the two countries as key partners in their respective regions.
“Our state visit is proof that the friendship between our two countries is growing stronger. And that’s what we want: to strengthen our friendship and, more importantly, cooperation in all areas,” said President Prabowo.
2025 also marks 72 years of diplomatic relations between Indonesia and Brazil, which now hold the highest level of Strategic Partner status. Brazil is Indonesia’s largest trading partner and source of investment in Latin America, while Indonesia serves as Brazil’s main gateway to Southeast Asia.
On that occasion, President Prabowo also conveyed his congratulations on the 203rd anniversary of Brazil’s Independence Day, which was just celebrated on September 7, 2025.
Eight MoUs and a USD 5 Billion Economic Commitment
The two heads of state witnessed the signing of eight cross-sectoral MoUs between ministries, institutions, and major companies from both countries. These agreements are strategically valuable, with the potential to reach US$5 billion in economic value, or approximately 25% of total current foreign direct investment in Indonesia.
The eight MoUs include:
- MoU between the Ministry of Energy and Mineral Resources (ESDM) of the Republic of Indonesia and the Ministry of Mining and Energy of the Federative Republic of Brazil on Cooperation in the Energy and Mining Sector, with a focus on the development of new and renewable energy (EBT), especially bioethanol.
- MoU between the National Agency for Research and Innovation (BRIN) and the Brazilian Ministry of Science, Technology, and Innovation on Cooperation in Science, Technology, and Innovation, including joint research in the fields of biotechnology and food security.
- MoU between the Indonesian Quarantine Agency and the Brazilian Ministry of Agriculture and Livestock on Sanitary and Phytosanitary Measures and Agricultural Product Certification, to facilitate the export and import of agricultural products from both countries.
- MoU between the Central Statistics Agency (BPS) of the Republic of Indonesia and the Brazilian Institute of Geography and Statistics (IBGE) on Cooperation in the Field of Statistics and Economic Data, to strengthen the exchange of statistical information and methodology.
- MoU between PT Danantara Indonesia and JBS NV (Brazil) in the agribusiness and livestock industry, to expand the meat and protein supply chain between the two countries.
- MoU between PT PLN (Persero) and J&F SA (Brazil) regarding Partnership in the Energy Sector, including potential joint investments in power generation and bioenergy.
- MoU between PT Pertamina (Persero) and Fluxus Brasil on the Development of Environmentally Friendly Oil & Gas Energy and Technology.
- MoU between the Indonesian Chamber of Commerce and Industry (KADIN) and APEX Brasil (Agência Brasileira de Promoção de Exportações e Investimentos) on Joint Trade and Investment Promotion, to expand market access for businesses in both countries
Towards the Indonesia–Mercosur CEPA: A Gateway to the Latin American Market
One of the most strategic outcomes of this meeting was a commitment to accelerate the formation of the Indonesia–Mercosur Comprehensive Economic Partnership Agreement (CEPA). This step will open Indonesia’s trade access not only to Brazil, but also to Argentina, Uruguay, and Paraguay.
Brazil, which currently holds the Mercosur presidency, played a key role in facilitating the acceleration of the agreement. If realized, the CEPA would serve as a key foundation for economic integration across the Southern Hemisphere, strengthening Indonesia and Brazil’s position as emerging economic powers within the BRICS and G20.
From Educational Diplomacy to Evaluation of the Implementation of Free Nutritious Meals (MBG)
Meanwhile, as host of the Conference of the Parties (COP) 30, to be held in Belem in November 2025, Brazil highlighted environmental issues, particularly cooperation in protecting tropical forests to maintain global climate stability. On the occasion, Brazil also expressed its appreciation for the success of Indonesia’s Free Nutritious Meals (MBG) program, which has reached approximately 36.7 million beneficiaries in one year.
As a follow-up, the First Lady of Brazil is scheduled to visit schools and the Women’s Empowerment and Nutrition Center (SPPG) in the Halim area of East Jakarta to witness firsthand the implementation of the MBG program in the field. This visit resulted in several important agreements outlined in a Joint Communique as a foundation for strengthening bilateral relations between Indonesia and Brazil, as well as the signing of four intergovernmental Memoranda of Understanding (MoUs) in the fields of statistics, sanitation and phytosanitary matters, mining and energy, and science, technology, and innovation.
In addition to the government agenda, President Lula also brought a 110-person business delegation representing various strategic sectors. The meeting resulted in four business cooperation agreements: between the Indonesian Chamber of Commerce and Industry (KADIN) and APEX (Brazil’s trade and investment promotion agency), PLN and J&F SA, Indonesia Energy Corporation (IEC), and Aguila Energia e Participações Ltda. (AEP), and PT Danantara and JBS NV.
This is President Lula’s second state visit to Indonesia, following his official visit on July 11–12, 2008, during his first term as President of Brazil.
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Reference:
Indonesia and Brazil Discuss Collaboration from Economics to Education in the New Era of South–South Diplomacy ( https://www.setneg.go.id/baca/index/indonesia_dan_brasil_bahas_kolaborasi_ekonomi_hingga_pendidikan_di_era_baru_diplomasi_selatan_selatan )
Mutual Visits by the Presidents of Indonesia and Brazil Mark the Strengthening of the Strategic Partnership ( https://kemlu.go.id/berita/saling-kunjung-presiden-indonesia-dan-brazil-tandai-penguatan-kemitraan-strategis?type=publication )
Indonesia and Brazil Sign 8 Memoranda of Understanding Witnessed by Prabowo and Lula ( http://tempo.co/politik/indonesia-brasil-teken-8-nota-kesepahaman-disaksikan-prabowo-dan-lula-2082639 )
