Lula proposes new era of Brazil–Indonesia cooperation and promises stability to attract foreign investment

The president Luiz Inácio Lula da Silva ended this Wednesday (22) the Brazil–Indonesia Business Forumem Jakartawith a speech aimed at expanding the economic and strategic relations between the two largest emerging economies in the southern hemisphere. In front of ministers and more than a hundred Brazilian businessmen, Lula defended sustainable partnerships, productive investments e technological and environmental cooperation between countries.

“If there is not, on the part of businesspeople from both Indonesia and Brazil, the necessary effort to be able to earn the money that I think is possible to earn, the countries’ trade will not be strong trade”, stated the president, highlighting the central role of the private sector in consolidating bilateral relations.

Confidence and predictability for investors

In his speech, Lula listed six keywords which, according to him, define the business environment that Brazil currently offers:
“Fiscal stability, legal stability, political stability, economic stability, social stability and predictability.”

The president stated that the government is committed to ensure security and trust to international investors, especially in sectors linked to clean energy, technology and infrastructure.

Lula also recalled his first visit to Indonesia17 years ago, at the height of 2008 financial crisisand made a direct criticism of the liberal economic policies that marked that period.

“The neoliberal prescription proved incapable of containing the turbulence generated in the developed world. Brazil proved that it was possible to grow without giving up inclusion and social well-being”, he said.

The president highlighted that the bilateral trade between Brazil and Indonesia has tripled since thenjumping from US$2.2 billion to US$6.3 billion in 2024but still below the combined potential of the two countries, which have a total of more than 500 million inhabitants.

Bilateral trade and strategic cooperation

Lula reinforced the desire to increase bilateral trade to levels above US$ 15 billiondefending a deeper and more balanced economic relationship.

“It is very little that a country with 280 million inhabitants and another with 215 million did not work enough so that today we could have a trade worth more than 15 or 20 billion dollars”, he stated.

Lula’s visit to Jakarta takes place in reciprocation for President Prabowo Subianto’s official visit to Braziland symbolizes, according to the Palácio do Planalto, the consolidation of a strategic partnership in the G20 and the global climate agenda.

The president also highlighted the collaboration in the defense and technology sectorsmentioning the performance of the Embraer and the Indonesian Air Force reconnaissance regarding aircraft capacity Super Tucano.

“The Indonesian Air Force is well aware of the Super Tucano’s capabilities,” said Lula, citing the defense cooperation agreement signed between the two countries.

Energy transition and environmental protection

The environmental theme occupied a central part of Lula’s speech, which highlighted the role of Brazil and Indonesia in preserving tropical forests by global energy transition.

“Less than 20 days separate us from COP-30. We will show that it is possible to promote development, tackle climate change and protect tropical forests and their rich biodiversity”, he stated.

The president highlighted the Tropical Forests Forever Fundcreated with initial contribution of US$ 1 billionintended for finance countries that keep their forests standing. The fund seeks transform environmental conservation into profitable economic activityreducing dependence on external donations.

“No one will be asking for money anymore as if they were asking for alms in order to keep our forest standing and prevent the planet from warming above 1.5°C”, declared Lula, defending that the model generate dividends and income alternatives for local communities.

Industrialization and value addition

In a pragmatic tone, the president pointed out the Indonesia as an example of sustainable industrializationhighlighting the country’s policy of adding value to the production of nickel and strategic mineralsinstead of just exporting raw materials.

“We do not intend to reproduce the condition of mere exporters of commodities. We want to add value in our territory with environmental sustainability and respect for local communities”, he concluded.

The speech summarizes the government’s objective of encourage green reindustrialization in Brazilcombining economic growth, innovation and environmental responsibility — pillars that Planalto seeks to highlight on the eve of COP-30which will be held in Belém (PA) in November.

Bilateral and global perspective

Diplomatic analysts assess that the forum marked a new chapter in the Brazil–Indonesia relationshipconsolidating a South–South cooperation axis in areas such as trade, defense, energy and environment.

Indonesia is today the Brazil’s largest trading partner in Southeast Asiawhile Brazil is the leading supplier of agricultural products and animal protein to the Asian country.

The two governments are expected to sign, in the coming months, memoranda of understanding on biofuels, forestry research, sustainable agriculture and cross-investment.

As it approaches, Brazil and Indonesia position themselves as protagonists of the global sustainable development agendadefending inclusive and environmentally responsible growth modelsaligned with the energy transition and to cooperation between emerging nations.

📊 Summary of the Brazil–Indonesia Business Forum:

Local: Jakarta, Indonesia

Event: Brazil–Indonesia Business Forum

Current trade: US$6.3 billion (2024)

Expansion goal: US$15 to 20 billion

Key themes: trade, defense, energy, environment and industrialization

Initiatives: Tropical Forest Fund (US$ 1 billion) and defense cooperation (Super Tucano)

Next milestone: COP-30, in Belém (PA)