Crude Palm Oil a Competitive Advantage Facing European Union Ban

Palm oil or green gold is an answer for next decade energy and human problem. This industry can increase the economic growth of a country due to increasing of demand for palm oil around the world. However, in the last decade this industry are facing the new rules of sustainability palm oil plantation. This policy has catastrophically push down Southeast Asia region export as the biggest palm oil producers. An important policy has to make in order to survive this new policy. The study tries to bring the focal point on how big the impact of the new policy towards two biggest palm oil country in the world, Indonesia and Malaysia. This research identified impact and researched a way for the palm oil countries to better cope with the sustainable policy from European union. The macroeconomic factor will be used as a determinant measured by crude palm oil (CPO) price, export volume and production, Palm oil production in both country. And the economic growth will be measured using GDP. For analysis, this study will be using e views for regression tools.