Brazil's Ethanol Pact With Indonesia

A week after signing an ethanol pact with the U.S., Brazil signed a similar agreement with Indonesia in hope of catalyzing ethanol production.

Brazil will provide technical help in terms of boosting Indonesia's sugarcane industry, as the Asian nation has dedicated 5.4 million acres for sugarcane ethanol production. Indonesia is also dedicating $1.42 billion in subsidies towards local farmers, and has already signed agreements with Indonesian and foreign companies to pump $12.4 billion into the ethanol industry. This will have a gargantuan impact on Indonesia's current output of 45 million gallons of ethanol per year.

It is good to see countries helping other countries as this will be essential in maximizing ethanol production. With the U.S. helping Brazil, Brazil helping Indonesia...will we see a domino effect?


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