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Adopting the Palm Oil Moratorium Under External Pressure: Indonesia's Response to the EU’s RED II

Author

Listed:
  • Wulandari, Wahyu
  • Testriono,
  • Karim, Moch Faisal

Abstract

How did the Renewable Energy Directive (RED) II encourage the Indonesian government to implement a moratorium policy for the palm oil industry? Specifically, this study investigates how the RED II regulation pressured the Indonesian government to adopt a moratorium policy for palm oil and why this happened. RED II is a continuation of the previous RED policy implemented by the European Union to regulate the use of renewable energy and aims to reduce greenhouse gas emissions. This study uses a qualitative approach to explore the factors that influence Indonesia's decision-making in responding to global demands for the sustainability of the palm oil industry, especially after the emergence of RED II. Using Spalding's policy adoption approach, the results show that the adoption of the moratorium policy in Indonesia was influenced by significant pressure from the European Union, especially the RED II policy, which limits palm oil imports due to its impact on deforestation and climate change. However, these factors are not sufficient to explain how Indonesia adopted the moratorium and why it happened. There are internal factors, namely socio-economic conditions and bureaucratic aspects in Indonesia that have encouraged the massive expansion of oil palm plantations. This study concludes that these external and internal factors influence each other, thus encouraging Indonesia to adopt the moratorium policy as an effort to overcome difficulties and challenges related to the sustainability of the palm oil industry.

Suggested Citation

  • Wulandari, Wahyu & Testriono, & Karim, Moch Faisal, 2026. "Adopting the Palm Oil Moratorium Under External Pressure: Indonesia's Response to the EU’s RED II," Forest Policy and Economics, Elsevier, vol. 182(C).
    • Handle: RePEc:eee:forpol:v:182:y:2026:i:c:s1389934125002710
    DOI: 10.1016/j.forpol.2025.103692
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    References listed on IDEAS

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