Middle East War: CPO Export Levy Remains at 12.5 Percent

JAKARTA - The Ministry of Trade states that the export levy (PE) on crude palm oil (CPO) remains at 12.5 percent, even as the world faces geopolitical turmoil. Trade Minister Budi Santoso, known as Busan, said the applicable export levy still refers to the decision from the meeting at the Coordinating Ministry for Economic Affairs. “For now, we’re still following that, following the outcome of yesterday’s meeting at the Coordinating Ministry for the Economy,” Busan said when met at the Ministry of Trade office in Jakarta on Friday (27/3/2026). The 12.5 percent palm oil export levy has been in effect since 1 March 2026, up from the previous 10 percent. “No (it’s not burdensome), especially since CPO prices are now starting to look good,” Busan remarked. According to him, the increase in the export levy was set jointly with consideration for future conditions. “Exports in terms of volume and value will increase, right?” Busan said. He explained that although several export-import commodities are under pressure due to the war between Israel and the United States (US) against Iran, some commodities are showing positive trends. Demand for CPO and coal, for example, is rising as many countries face energy crises amid soaring global oil prices caused by the war. “Including CPO, which is in high demand in the current situation, so our supply will definitely be much needed,” he added. According to him, several vegetable oil exporting countries that serve as CPO substitutes are affected by the war, leading to disruptions in their exports. “On that note, we’re optimistic that CPO exports will increase, both in value and volume,” Busan stated. CPO prices have risen 9.30 percent compared to the previous month.