Indonesia and Brazil agreed to strengthen bilateral relations and signed a series of cooperation agreements on Thursday as their leaders met in Jakarta, marking a significant step toward deepening economic and political ties between two of the world’s largest emerging economies.
Brazilian President Luiz Inácio Lula da Silva was welcomed with a marching band and national anthems at the presidential palace before holding talks with President Prabowo Subianto. The visit, part of Lula’s tour of Southeast Asia, underscores both nations’ commitment to expanding collaboration beyond traditional partners.
The two leaders witnessed the signing of agreements covering oil and gas development, electricity, technology, mining, and agriculture. The new pacts are seen as a strategic move to diversify economic partnerships, coming several months after U.S. President Donald Trump imposed a 19 percent tariff on imports from Indonesia under a new trade policy, and a 50 percent tariff on Brazilian products.
“How is it that two important countries in the world, such as Indonesia and Brazil, which together have a population of almost 500 million, only have a trade volume of $6 billion?” Lula said at a joint press conference after the talks. “This is not enough for Indonesia, and it is not enough for Brazil.”
President Prabowo said both governments were exploring the establishment of a free trade agreement between Indonesia and Mercosur — the South American trade bloc consisting of Brazil, Argentina, Paraguay, Bolivia, and Uruguay. “I believe this will strengthen our relations and allow both our economies, as well as those of Latin America, to grow rapidly,” he told reporters.
During the conference, Prabowo described Indonesia and Brazil as “two new economic powers that are rising,” emphasizing the need to increase trade, investment, and technology cooperation to support sustainable growth.
Brazil has sought to deepen its engagement with Southeast Asia in recent years, recognizing the region’s growing economic influence. Lula’s attendance at the upcoming Association of Southeast Asian Nations (ASEAN) Summit in Malaysia — the first ever by a Brazilian president — reflects that ambition and signals stronger interregional diplomacy.
Brazil remains one of Indonesia’s key trading partners in South America. Total trade between the two countries reached $4.3 billion from January to August 2025, according to Statistics Indonesia data. Jakarta has also intensified its economic diplomacy in Latin America, signing a trade agreement with Peru in August and joining the BRICS bloc of major emerging economies — which includes Brazil — earlier this year.
Both leaders expressed optimism that Thursday’s agreements would pave the way for a more dynamic and mutually beneficial partnership, setting the tone for broader cooperation between Southeast Asia and South America in the years ahead.
October 23, 2025, The Jakarta Post
(https://www.thejakartapost.com/business/2025/10/23/indonesia-brazil-strike-cooperation-deals-as-leaders-meet.html)