INDONESIA'S TRADE DIPLOMACY: A CASE STUDY OF INDONESIAN GOVERNMENT'S EFFORTS TO ANTICIPATE FRANCE'S THREAT TO IMPLEMENT EXCESSIVE TAX ON PALM OIL (2016)

Abstract

All advancements in this globalization era have demanded countries in the world to think and act sustainably to keep the growth and development in the area of economy, social and environment in a balance rate. The adoption of sustainable development concept, however, is perceived differently by each country. Some countries manifest it through stricter laws and regulations, and some others are still in the maturing process in which needing some time and efforts to reach a certain standard. This different forms of manifestation lead to a clash of interest and threat perception. Oil palm industry, although it is considered as economically helpful for Indonesia, however, France considers it as a forest and biodiversity destroyer. Both countries' stances have been constructed by their own different national condition and dynamic influence from the international system. France claims that the proposed excessive tax plan on imported palm oil to its country will help decrease the rate of deforestation. In contrast, Indonesia believes that its palm oil industry has been supported with a set of regulations and programs, which comply with the idea of sustainable development. Still, to make France cancel the proposed plan, Indonesia needs to convince France through its trade diplomacy which aims to prevent and anticipate any worst scenario which may harm Indonesia's economy as a whole. As such, this thesis is significant in providing detailed information about the palm oil discourse between Indonesia and France, in depth analysis on France's reasons to support the plan, and Indonesia's efforts through its trade diplomacy to anticipate the proposed excessive tax plan.