Indonesia and Brazil agreed to boost ties and struck a series of agreements on Thursday as their leaders met in Jakarta, with Southeast Asia’s biggest economy looking to make further inroads into South American markets.
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Brazilian President Luiz Inacio Lula da Silva was greeted by a marching band and national anthems at a ceremony at the presidential palace in Jakarta before talks with Indonesian counterpart Prabowo Subianto.
The pair witnessed the signing of agreements on oil, gas, electricity, technology, mining and agriculture, coming several months after US President Donald Trump imposed a tariff rate of 19 per cent on imports from Indonesia under a new pact, and a 50 per cent 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 US$6 billion?” Lula said at a joint press conference after talks.
“This is not enough for Indonesia, and it is not enough for Brazil.”
The Indonesian leader said both countries were working to establish a free-trade agreement between the Southeast Asian powerhouse and the South American bloc Mercosur, which consists of Brazil, Argentina, Paraguay, Bolivia and Uruguay.
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“I believe this will strengthen our relations and will make both of our economies and the economies of Latin America grow rapidly,” Prabowo told Lula.