EU's Renewable Energy Directive II or RED II was aimed to achieve the renewable energy use target in EU and reduce the environmental issues especially greenhouse gas emission from every industry within the EU’s member states. However, the impact of this EU’s environmental policy has broadened outside the region, including to Indonesia. To cope with EU’s RED II policies and the previous directive’s impact, Indonesia have done several efforts including held a dialogue with the EU, file the case to WTO for suspecting the discrimination within the EU’s policy, also change the domestic environment policy related to palm oil industry. With the qualitative research method as Cresswell’s (2009) stated to make sense a social phenomenon using inductive analysis and concluding the narrative that emerges the data analysis, we find that since its enactment, EU's RED II in 2018 had given an impact not only in the EU’s domestic biofuels industry but also to Indonesia including the environmental policies related to palm oil industry and deforestation cases in palm oil concession.