Trade Minister Confident CPO Exports Will Rise Amid Middle East Conflict

JAKARTA, KOMPAS.com - Trade Minister Budi Santoso, alias Busan, has expressed confidence that exports of crude palm oil (CPO) will rise even as the world faces war in the Middle East.

Busan stated that the government is optimistic about increases in both the volume and price of CPO, as many vegetable oil exporting countries are affected by the conflict.

“If that happens, we are optimistic that CPO exports will increase, including both value and volume,” said Busan when met at the Ministry of Trade office in Jakarta on Friday (27/3/2026).

However, those vegetable oil exporting countries are also impacted by the war, leading to a shortage of vegetable oil supplies.

This situation presents an opportunity to drive up demand for CPO.

“CPO is much needed in the current situation; our supply will certainly be in high demand,” Busan remarked.

The war, which restricts traffic through the Strait of Hormuz, has caused global oil prices to soar, inflating logistics costs.

Nevertheless, several commodities such as CPO, coal, and nickel are experiencing price increases.

“Now coal is also starting to see increased demand, for example from the Philippines, where they are now dependent,” he added.

According to Busan, countries in Latin America, South Africa, and members of the Regional Comprehensive Economic Partnership (RCEP)—comprising ASEAN countries and five partner nations—will become export destinations.

Diversification of export markets, which typically takes a long time, tends to occur rapidly when the world faces geopolitical turmoil.

Many importing countries are struggling to obtain supplies from other nations due to the crisis.