Brazil, Indonesia To Sign Ethanol Agreement
Brazil signed an ethanol agreement with Indonesia on Thursday (15/3/07), Brazilian daily O Estado de Sao Paulo reported.
In the near future, Indonesia is expected to receive $12 billion investments from international companies to develop its ethanol production.
In line with this context, Jakarta may become one of the biggest ethanol suppliers in southeastern Asia in the next few years and Brazil seeks to guarantee its share on that market, the report noted.
The agreement with Indonesia envisages the creation of a joint committee which will study strategies for the popularization of ethanol and a possible transfer of technology from Brazil to Indonesia. The committee will also make decisions related to the trade between the two countries.
For Brazil, the move aims at creating a market for ethanol. The country's policy targets to strengthen the global ethanol consumption not only to stimulate the demand for ethanol producing technology but also the demand for Brazilian ethanol itself in the future.
Indonesia, in turn, seeks to revive its agricultural sector. For Jakarta's authorities, ethanol may be one of the solutions to guarantee income for local agricultural producers.
In the near future, Indonesia is expected to receive $12 billion investments from international companies to develop its ethanol production.
In line with this context, Jakarta may become one of the biggest ethanol suppliers in southeastern Asia in the next few years and Brazil seeks to guarantee its share on that market, the report noted.
The agreement with Indonesia envisages the creation of a joint committee which will study strategies for the popularization of ethanol and a possible transfer of technology from Brazil to Indonesia. The committee will also make decisions related to the trade between the two countries.
For Brazil, the move aims at creating a market for ethanol. The country's policy targets to strengthen the global ethanol consumption not only to stimulate the demand for ethanol producing technology but also the demand for Brazilian ethanol itself in the future.
Indonesia, in turn, seeks to revive its agricultural sector. For Jakarta's authorities, ethanol may be one of the solutions to guarantee income for local agricultural producers.