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Indonesia and Brazil to Sign Agribusiness and Biofuel Agreement

The two countries will reportedly cooperate on agribusiness and biofuel development.

Indonesia and Brazil will sign a deal later this week in order to support cooperation in agribusiness and ethanol development, according to a statement Wednesday by the Brazilian embassy in Indonesia.

The deal will establish a joint Consultative Committee between the two countries. The two countries' agriculture ministers will sign a memorandum of understanding in Jakarta March 15-16.

Indonesia's biofuel production could reach 200,000 barrels a day by 2010, helped by government efforts to develop a biofuel industry there. The country plans to up sugar cane and cassava production in order to boost ethanol production. Currently, most of Indonesia's biofuel capacity is in the form of biodiesel, derived largely from crude palm oil.

Brazil is the world's leading ethanol producer, with sugar cane as the main feedstock.

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