In this paper, the hadronic matrix element of B0→K0π0 decay is calculated systematically, which includes the contribution of factorization in the leading order, the O(αs) correction from hard gluon exchange and the correction from soft gluon exchange. The soft gluon exchange cannot be calculated in quantum chromodynamics(QCD) factorization as well as in perturbed QCD, but it can be calculated in terms of the light cone QCD sum rules,and the calculation shows that the amplitudes of soft gluon exchange, the factorization in the leading order and the O(αs) correction in the decay channel are of the same order of magnitude. So, the soft gluon exchange effect cannot be neglected. Finally, the branch ratio is calculated and it is consistent with the experimental result.