Abstract :
This research aims to: 1) describe Indonesian palm oil trade in the European Union market, 2) analyze the development of the European Union's Renewable Energy Directive (RED) policy implemented by three member countries including Spain, Italy and Germany, 3) analyze the influence of the Renewable Energy Directive (RED) policy The European Union's on Indonesian palm oil exports to destination countries including Spain, Italy and Germany. The variables used are the price of palm oil in the European Union, the real exchange rate of the Rupiah against the Euro, and dummy variables, namely pre-2003 Directive, 2003 Directive policy, and Renewable Energy Directive (RED) policy. The data used is secondary data for the period 2000?2021. The analysis method is carried out using a simultaneous equation approach using the Two Stage Least Square (2SLS) method. The Indonesian palm oil trade model specification consists of 6 equations, 4 structural equations and 2 identity equations. The estimation results show that the 2003 pra-directive had a real influence on Indonesian palm oil exports to Spain and Germany, the Renewable Energy Directive (RED) policy had a real influence on Indonesian palm oil exports to Germany, and pre-directive 2003 until the Renewable Energy Directive (RED) policy did not show a real influence on Indonesian palm oil exports to Italy.
Keywords : Palm Oil, Renewable Energy Directive (RED), 2SLS