Interaction between the European Union’s renewable energy directives and Indonesia’s sustainable palm oil policy

Abstract

This research shows that Indonesia is highly influenced and affected by the European Union’s actions and so otherwise. Such a premise is proven by the impact of which the European Union’s Renewable Energy Directive (RED) policy has manifested in the form of entrance restriction for Indonesian palm oil into the European Union. As a response to anticipate RED’s further impact, Indonesia then launched a strategy to prevent Indonesia’s export turbulences to Europe, known as Indonesian Sustainable Palm Oil (ISPO). The interaction between RED and ISPO is evident and can be seen through the adjustment process of ISPO’s containments to suit RED’s. Although details of clauses in RED and ISPO are not entirely similar, both were launched based on the same assumption; as a participatory act in the reduction of emissions and sustainability of palm oil.