Indonesia now has become the biggest producer of crude palm oil (CPO) in the world. Indonesia's CPO export destinations including the Netherlands, China and the United States. United States has recently issued a notification of EPA (Environment Protection Authority, which prohibits Indonesia's CPO to enter the country because it is evaluated to be not environmentally friendly. To meet eligibility, CPO product must have a 20 percent emission reduction levels. United States EPA has accused that Indonesia's crude palm oil products can only reduce green house gases 11 to 17 percent. This notification invite a variety of opinions and reactions from both the government and observers. The Indonesian government strongly refutes the notification and has prepared arguments against it. Analysts say the issue of environment that is exhaled by the EPA is part of the trade war strategy to stifle the global competition . US ambassador to Indonesia, Scot Marciel on Friday explained that EPA's notification is the environment regulatory authority but the government of the United States does not prohibit Indonesia's CPO exports. Even though Indonesia still can export CPO to the United States, the issue disseminated by EPA is very disturbing and harm Indonesia's CPO. Therefore, the Government of Indonesia should do resistance and prove that the allegations are not proven. This issue should be dealt with carefully. If not, it can also cause adverse effects to other CPO exporting countries. U.S. EPA's notification can be a momentum for the Indonesian government to develop downstream products which have not been managed optimally. The utilization of palm oil to be industrial products that have added value in Indonesia is merely the base material of cooking oil, margarine, soap, oleochemicals, cosmetic and others. Only about 20 percent has been realized in the form of the economic industry.

Though the current demand for downstream products CPO in the country is considerable. / /