INDONESIA’S EFFORT TO STRENGTHEN PALM OIL DIPLOMACY AFTER EUROPEAN UNION PLAN TO PHASE-OUT PALM OIL (2018-2020)

Abstract

In early 2018, the EU revise the Renewable Energy Directive (RED), where in the RED reform the EU plans to phase-out palm oil as a raw material for biofuels. However, after going through the trilogue, the EU decided not to phase out palm oil but will phase out the biofuels raw materials from food crops including vegetable oils which are high-risk ILUC (Indirect Land Used Change). However, in the Delegated Acts which complements RED II, palm oil is categorized as a high-risk ILUC commodity so that it must be phase-out in 2030. Considering the importance of palm oil to the Indonesian economy, the Indonesian government then included the palm oil issue as one of Indonesia's diplomatic priorities to protect the economic interests by strengthening its palm oil diplomacy. This thesis finds that although the Indonesian government's efforts to strengthen palm oil diplomacy have not shown significant results, especially in palm oil exports to the EU, at least the palm oil diplomacy carried out by Indonesia can enhance the palm oil positive image with all its sustainable commitments so that the EU knows that the palm oil produced in Indonesia is sustainable and environmentally friendly.