Jakarta. State-run oil company Pertamina plans to acquire a stake in a Brazilian company to secure bioethanol and sugar supplies, Chief Investment Minister Luhut Binsar Pandjaitan announced on Monday.

The move is part of the government’s initiative to promote alternative energy sources other than fossil fuels.

"The president has instructed Pertamina to acquire the company that will supply us with sugar and bioethanol," Luhut said during a seminar in Jakarta.

The renewable biofuel is intended to replace gasoline as motor vehicle fuel and will help reduce air pollution in Jakarta, Luhut explained. He declined to specify the name of the Brazilian company.

Speaking separately, President Joko “Jokowi” Widodo confirmed Luhut’s remarks when asked by reporters.

"Pertamina has already become a multinational company, so I think it’s only natural for it to expand overseas to boost profit based on the future economic and business outlook," the president said.

"It’s business as usual, and I believe everything has been calculated, including the potential benefits for this nation," he added.