Brazil and Indonesia Strengthen Economic and Trade Ties with New Agreements and Initiatives
Brazil and Indonesia have signed multiple cooperation agreements during President Lula's 2025 visit to Jakarta, focusing on expanding trade, using local currencies, and enhancing investment and strategic partnerships.
- • Brazil and Indonesia signed several cooperation agreements to boost trade and economic ties during Lula's Jakarta visit.
- • Bilateral trade has grown from $2 billion to $6.5 billion, with a target of $20 billion in coming years.
- • Lula advocated for the use of local currencies in bilateral trade using Pix and Qris payment systems.
- • Brazil offers its military industrial base to support Indonesia, and both nations share views on global issues such as Gaza and UN reform.
Key details
During President Luiz Inácio Lula da Silva's official visit to Jakarta on October 23, 2025, Brazil and Indonesia signed several cooperation agreements aimed at deepening economic, commercial, and strategic relations. These agreements span sectors including agriculture, energy, commerce, education, defense, and science and technology, reflecting a broad commitment to enhanced bilateral collaboration. President Lula highlighted that bilateral trade between Brazil and Indonesia has grown from $2 billion to $6.5 billion over the past two decades, with ambitions to reach $20 billion in the near future. This growth is supported by ongoing negotiations for a tariff preference deal between Mercosur and Indonesia, expected to further boost trade and job creation (ID 113244; 113246).
Lula strongly advocated for the adoption of local currencies in trade between the two nations, promoting the use of Brazil's Pix and Indonesia's Qris payment systems as effective tools to facilitate bilateral commerce and potentially among BRICS countries. He emphasized the necessity to shift from unilateral to multilateral trade approaches to increase economic diversification and resilience. Lula reinforced the role of the private sector in translating diplomatic relations into economic prosperity and stressed the mutual interest in discussing trade in local currencies (ID 113248).
Highlighting promising sectors, Lula pointed to cooperation in critical minerals, where Brazil holds approximately 10% of the world's reserves despite limited mapping, and biofuels, planning for joint initiatives to establish a global biofuels market. He also announced Brazil's proposal for maritime decarbonization at COP30, aiming to significantly increase sustainable fuel usage globally. Lula underscored Brazil's stable economic environment, inviting Indonesian investment as a strategic and secure decision. The visit also marked the first by a Brazilian president to Indonesia since 2008, underscoring the deepening strategic partnership between the two nations (ID 113251; 113246).
Further cooperation discussions included defense and energy sectors, with Lula offering Brazil's military industrial capacity to support Indonesia’s strategic needs. The leaders shared aligned views on international issues such as the Gaza conflict and sought UN Security Council reform to enhance global representation. This visit builds on recent reaffirmations of cooperation in agriculture, food security, and sustainable development.
President Lula also confirmed his candidacy for the 2026 Brazilian presidential election, signaling continuity in efforts to elevate Brazil's role in global economic partnership and multilateral diplomacy (ID 113244).