The Effect of the Implementation of Indonesian Sustainable Palm Oil (ISPO) on the Average Export Value of Indonesian Crude Palm Oil (CPO) to the Netherlands and Italy during the 2012-2017 Period

Abstract

This study aims to determine the effect of the application of Indonesian Sustainable Palm Oil
(ISPO) on the average export value of Indonesian Crude Palm Oil (CPO) to the Netherlands
and Italy during the period 2012 - 2017. The choice of the two export destination countries
was due to the two countries This is a member of the European Union that plans to
implement a Renewable Energy Directive (RED) policy that has the potential to reduce CPO
exports to these countries. The research method used in this study uses the average difference
test method by comparing the average export value of Indonesian CPO before the
implementation of ISPO in 2014 with the average export value of CPO after the
implementation of ISPO. Research shows that there is no significant difference in the average
value of CPO exports between before and after the implementation of ISPO. This shows that
the implementation of ISPO has not been able to have a positive impact on increasing
Indonesia's CPO exports to the Netherlands and Italy.