INDONESIA PALM OIL DIPLOMACY TO COPE WITH INTERNATIONAL PRESSURE ON ENVIRONMENTAL ISSUES: FROM RSPO TO ISPO IN 2015 – 2020

Abstract

Crude Palm Oil (CPO) has become one of the most valuable raw material exported by Indonesian government across the globe for more than a decade and had become the largest CPO exporter today. To reduce criticism to its environtmental issues, Indonesia has participated in organization such as Roundtable on Sustaianable Palm Oil (RSPO) that gave certification and verification to CPO. It benefits Indonesia significantly in economic sector but also it is relationship with another country in the organization. Upon leaving RSPO due the policies that are not aligned with Indonesian interest, Indonesia Sustainable Palm Oil (ISPO) was founded in order to serve Indonesia interest in palm oil including exploring new markets. Challenges from during RSPO time up to ISPO however persist, European Union Renewable Energy Policy Directive I & II that holds Indonesia CPO progress as well as international organization such as Greenpeace and World Wide Fund (WWF) claiming the industry is destroying the environment. Including Asia-Pacific Economic Cooperation (APEC) on their Environmental Good and Services (EGS) that are listing Indonesia CPO as eco friendly. Initially ISPO did not gained any trust due to standart of the organization and other reliable certification, but it had progress significantly to settle Indonesia market and relationship with other nations. This research conducted to see the Indonesia Palm Oil Diplomacy from RSPO to ISPO from period of 2015-2020 to overcome the criticisms towards environtmental issues. This research is conducted with qualitative descriptive and examined the role with several theories such as National Interest, International Political Economy, and Sustainable Development Concept. This research aimed to identify the contribution of RSPO and ISPO to Indonesia Palm Oil.