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Indonesia's palm oil diplomacy in the European Union : challenges and the way forward
Over the last few decades, palm oil has become one of the most important trade goods globally, solidifying its position as an essential global source of food and biofuel. Despite its success, the palm oil industry has faced scrutiny from green activists and consumers, who have blamed its production for fires, forest loss, and worker exploitation. For Indonesia, the palm oil industry is a national priority, as it has been a source of income for almost 18 million Indonesians and has lifted 10 million people out of poverty. Additionally, Indonesia's palm oil export value reached over USD $17 billion in 2020 alone. Conversely, many Western countries saw the rise of palm oil as a threat to their respective vegetable oils, mainly because palm oil has a lower production cost and higher yield than other seed-based oils. The European Union (EU) is one of Indonesia’s leading export destinations for palm oil, but it has implemented several discriminatory policies against palm oil.
Against this backdrop, this paper aims to identify the challenges that have been faced by the Ministry of Foreign Affairs of the Republic of Indonesia (MoFA) in its palm oil diplomacy in the EU and explore the alternative approaches that need to be taken in the future. The findings of this paper indicate that while the EU plans to permanently phase out the use of palm oil for biofuels, the potential for palm oil as a consumer product remains untapped. First, the MoFA must push for the recognition of Indonesian Sustainable Palm Oil (ISPO) to secure long-term market access to Indonesian palm oil in the EU. Second, in terms of building a positive image of Indonesia's palm oil industry, the MoFA cannot underestimate the role of digital media in controlling the palm oil narrative. Third, shifting 'palm oil diplomacy' toward 'vegetable oil diplomacy' can be a more holistic and universal approach, thus making it a lot easier to rally support from other countries.
| 2021-0212 | Sekdilu 42-2021 | Training Materials Repository | Tersedia |
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