Trade dispute over palm oil involving Indonesia, Malaysia, and the EuropeanUnion
DOI:
https://doi.org/10.62527/jlast.1.2.19Abstract
Palm oil is a predominantly utilized raw ingredient in the production of food, cosmetics, and
household cleaning products. The global usage of this product is on the rise, rendering it a
significant asset in international commerce. Given its status as the leading palm oil
producer, Indonesia encounters trade obstacles from nations that impose restrictions on
palm oil imports based on environmental concerns, including deforestation and greenhouse
gas emissions. The European Union, a significant recipient of Indonesian palm oil exports,
has implemented the Renewable Energy Directive (RED) and RED II. These regulations
impose limitations on the use of palm oil in biodiesel starting from 2021 and progressively
prohibit it entirely by 2030. These rules, although designed to safeguard the environment,
are seen by some as protectionist measures aimed at safeguarding local biofuel producers.
The governments of Indonesia and Malaysia have voiced concerns and are actively pursuing
equitable and enduring resolutions to preserve their market entry
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