Behind the Cancellation of Green Refinery Cooperation Between Pertamina and Eni: An Analysis of Domestic and Regional Aspects

Main Article Content

Muhammad Fauzi Abdul Rachman
Yanyan Mochamad Yani
Ian Montratama


Pertamina and Eni faced double strike problems. The Italian government did not grant the license for building Indonesian crude palm oil (CPO) based green finery to Eni-Pertamina as most Indonesian CPO producers do not possess RSPO certificates and the EU restricts the use of CPO. The policies resulted in opportunities loss for Pertamina and Eni in 2019. This qualitative paper examined the logical reasons behind the Italian government decision by two levels of analysis, domestic and regional locus. The finding shows that domestically, political circumstances among parties and figures, other than CPO commodities farmers, played a significant role in the cancellation. The historical instability in Italy domestic political situation also brought it closer to revocation. On another level, the ups and downs of Italy-the EU relations before and during Conte I and Conte II government were a regional reason behind it.

Article Details

How to Cite
Rachman, M. F. A., Yani, Y. M., & Montratama, I. (2022). Behind the Cancellation of Green Refinery Cooperation Between Pertamina and Eni: An Analysis of Domestic and Regional Aspects. Journal of International Studies on Energy Affairs, 2(2), 123–138.
Author Biographies

Yanyan Mochamad Yani, Universitas Padjadjaran

Professor of International Relations

Ian Montratama, Universitas Pertamina

International Relations


Bortoluzzi, G., Gatti, M., Sogni, A., & Consonni, S. (2014). Biomethane production from agricultural resources in the Italian scenario: Techno-Economic analysis of water wash. Chemical Engineering Transactions, 37, 259–264.

da Conceição-Heldt, E., & Mello, P. A. (2017). Two-Level Games in Foreign Policy Analysis. In Oxford Research Encyclopedia of Politics.

EU Big Market for Indonesian Palm Oil, but Big Challenges Remain. (2017). Indonesia Investments.

Fabbrini, S. (2019). Italy and the EU: A Relationship with Uncertain Outcomes. In M. Kaeding, J. Pollak, & P. Schmidt (Eds.), The Future of Europe: Views from the Capitals (p. 61). Palgrave Macmillan.

Falcone, P. M., Lopolito, A., & Sica, E. (2018). The networking dynamics of the Italian biofuel industry in time of crisis: Finding an effective instrument mix for fostering a sustainable energy transition. Energy Policy, 112(February 2017), 334–348.

Gaol, D. F. (2018). Faktor Penghambat Diplomasi Cpo Indonesia Di Pasar Eropa. Indonesian Journal of International Relations, 2(2), 38–50.

Gourevitch, P. (1978). The second image reversed: The international sources of domestic politics. International Organization, 32, 881–912.

Henisz, W. J., & Zelner, B. A. (2006). Interest groups, veto points, and electricity infrastructure deployment. International Organization, 60(1), 263–286.

Le Feuvre, P. (2020). Transport Biofuels.

Moschella, M., & Rhodes, M. (2020). Introduction. Contemporary Italian Politics, 12(2), 112–125.

Murano, R., Maisano, N., Selvaggi, R., Pappalardo, G., & Pecorino, B. (2021). Critical issues and opportunities for producing biomethane in Italy. Energies, 14(9), 1–14.

Murti, W. (2017). The influence of crude oil price in biodiesel and its implication on the production of palm oil: The case of Indonesia. European Research Studies Journal, 20(2A), 568–580.

Nau, H. R. (2019). Perspectives on International Relations: Power, Institutions, and Ideas. In Angewandte Chemie International Edition, 6(11), 951–952. (Sixth edit). SAGE Publications.

Paradila, Y. N. (2019). Kerja Sama Ekspor Crude Palm Oil (CPO) Indonesia ke Negara Italia Tahun 2011-2015. JOM Fisip, 6(I), 2–12.

Poli, E. (2021). Italy: Has Salvini Saved the Country from Himself? Not Yet. In M. Kaeding, J. Pollak, & P. Schmidt (Eds.), Euroscepticism and the Future of Europe: Views from the Capitals (p. 73). Palgrave Macmillan.

Pries, F., Talebi, A., Schillo, R. S., & Lemay, M. A. (2016). Risks affecting the biofuels industry: A US and Canadian company perspective. Energy Policy, 97, 93–101.

Putnam, R. D. (1988). Diplomacy and Domestic Politics: The Logic of Two-Level Games. International Organization, 42(3), 427–460.

Regalia, I., & Regini, M. (2018). Trade Unions and Employment Relations in Italy during the Economic Crisis. South European Society and Politics, 23(1), 63–79.

Sallustio, L., Pettenella, D., Merlini, P., Romano, R., Salvati, L., Marchetti, M., & Corona, P. (2018). Assessing the economic marginality of agricultural lands in Italy to support land use planning. Land Use Policy, 76(August 2017), 526–534.

Solomon, B. D., & Krishna, K. (2011). The coming sustainable energy transition: History, strategies, and outlook. Energy Policy, 39(11), 7422–7431.

Ulgiati, S., Russi, D., & Raugei, M. (2008). Biofuel Production in Italy and Europe: Benefits and Costs, in the Light of the Present European Union Biofuel Policy. In D. Pimentel (Ed.), Biofuels, Solar and Wind as Renewable Energy Systems (p. 465). Springer.

Viccaro, M., Cozzi, M., Rocchi, B., & Romano, S. (2019). Conservation agriculture to promote inland biofuel production in Italy: An economic assessment of rapeseed straight vegetable oil as a self-supply agricultural biofuel. Journal of Cleaner Production, 217, 153–161.