Ban of Indonesia’s Palm Oil Products to the European Union and Indonesia’s Diplomacy Efforts

  • Syahrul Salam
  • Mansur Juned
Keywords: economic security, environment, nation branding, trade wars, European Union


The European Union (EU) has officially banned palm oil products as a biofuel material for its members gradually for environmental damage issues. This policy threatens the palm oil commodity and in turn it has a negative effect on Indonesia's economic security. The Indonesian side has carried out various resistances from diplomacy efforts, lawsuits to the World Trade Organization (WTO) to implementing export restriction policies. This study aims to analyze Indonesia's trade dispute with the European Union and its impact on Indonesia’s palm oil products by using the concepts of public diplomacy and nation branding, economic security, and trade wars. The study used primary data in the form of expert interviews and it got support from secondary data in a kind of literature studies. It was processed with qualitative descriptive method. The study results show that the restrictions on nickel exports that Indonesia has implemented after the RED II prevails and the provisions in the RED II makes Indonesia’s palm oil products difficult indicate a trade dispute between the two parties. The ban of the European Union to the palm oil also not purely bases on environmental motivations but rather to increase the demand for the EU's local vegetable oil market.