"We are recovering the Brazilian state's planning capacity," says Lula in Indonesia

247 - During the closing of the Brazil-Indonesia Business Meeting, held this Thursday (23) in Jakarta, President Luiz Inácio Lula da Silva stated that the Brazilian government is consolidating a new cycle of development based on state planning, innovation and international integration.

Lula emphasized the role of economic reforms and dialogue between countries of the Global South in building a more balanced and cooperative economy. In his speech, the president highlighted: "My government is recovering the planning capacity of the Brazilian State and working to attract more and more investments. The new results achieved are the fruit of consistent work in regulatory modernization and incentives for innovation and public-private partnerships."

Tax and fiscal policies

The head of state also emphasized the recent changes in the country's fiscal and tax policy. "Last year, we approved a tax reform to correct historical distortions. This month, the House of Representatives approved an income tax exemption for those earning up to approximately one thousand dollars a month and a 10% increase for those earning more than one hundred thousand dollars a year."

Lula emphasized that Brazil maintains a universalist diplomatic tradition, seeking to expand relations with all regions of the world, especially Southeast Asia. "We want to continue expanding our relations with the world, without distinction or automatic alignment. ASEAN is a bloc of 680 million inhabitants and has experienced accelerated economic growth and rapid technological evolution. Its aggregate GDP is over 4 trillion dollars, representing the fourth largest economy in the world, behind the United States, China, and Japan."

Integration between emerging economies

The president also highlighted recent progress in integration among emerging economies, mentioning the trade agreement reached with Singapore and ongoing negotiations with Indonesia. "Expanding and integrating, broadening the integration of our economies is a choice that has proven to be correct. In December 2023, during Brazil's last presidency of Mercosur, we reached an agreement with Singapore. During our current presidency, until the end of the year, we will advance negotiations for a preferential trade agreement between Mercosur and Indonesia."

Lula also highlighted the role of BRICS in building a new, more inclusive international financial model. "Within the BRICS framework, Brazil's PIX and Indonesia's CRIS offer an effective and accessible payment system model that can inspire measures to facilitate trade in local currencies between countries in the bloc. This move is also part of a broader Brazilian strategy to diversify partnerships and facilitate trade."

Cooperation between governments and businesses

 In criticizing unilateral policies imposed by major powers, the president stated: "Like Indonesia, Brazil opposes unilateral and coercive measures that distort trade and limit economic integration."

In closing his speech, Lula defended the importance of cooperation between governments and businesses to transform political affinity into concrete gains for the populations of both countries. "It is the private sector, through partnerships and joint projects, that will transform our diplomatic affinity into shared prosperity for our society. Indonesia and Brazil will remain partners in building a shared future of cooperation, development, and social justice."