28/02/2013 (TEMPO Interactive) -  The Trade Ministry has raised the tax on crude palm oil (CPO) export to 10.5 percent from 9 percent previously following a surge of international market prices of the commodity.

"We refer to the average insurance freight cost from Rotterdam, Malaysia, and Indonesia's CPO market," said ministry spokesperson Arlinda Imbang Jaya in a statement issued on Sunday, Feb. 24.

Executive Director of Indonesian Palm Oil Association Fadhil Hasan said it was hard to determine the impact of the export duty as prices were still volatile.

"It's hard to foresee its prospects for the next few months," he said.

Fadhil said Malaysia had also increased its export duty, from zero to 4.5 percent, beginning March. Earlier, Indonesia and Malaysia had agreed to reduce supplies to boost CPO prices to near its normal range of US$900 per metric ton.