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Palm Oil Profit Sharing: Encourage Infrastructure Development and Economic Equity in Central Kalimantan

Special doc./Assistant in Economy and Development, Secretariat of Central Kalimantan Province, Sri Widanarni led the discussion about Activity and Budget Draft from palm oil profit sharing in Central
Palm Oil Profit Sharing: Encourage Infrastructure Development and Economic Equity in Central Kalimantan

InfoSAWIT, PALANGKARAYA – Assistant in Economy and Development Central Kalimantan Secretariat, Sri Widanarni led the meeting to discuss Activity and Budget Draft of Palm Oil Profit Sharing in Central Kalimantan Province. It was running in the hall of Research and Development Regional Development Plan Agency Central Kalimantan Province. She read the notice of Vice Governor of Central Kalimantan that emphasized it is significant to get palm oil profit sharing as the source of income for the regions, Monday (1/4/2024).

Palm oil profit sharing is the fund allocation from the income percentage from (crude) palm oil and its derivative products’ out fee and levy. 20% of palm oil profit sharing should be allocated for the related province(s), 60% of it would be for regencies/cities that produce palm oil, and 20% would be for other regencies/cities that directly border with producer regencies/cities.

“Palm oil profit sharing should be allocated to fund development activity and infrastructure maintenance, such as, ways and or other activity that ministry decided. Besides, ways and bridges where CPO and fresh fruit bunch (FFB) trucks pass through, should be improved,” she said, as InfoSAWIT quoted from the official page of Central Kalimantan Province, Tuesday (2/4/2024).

The infrastructures that would be funded by palm oil profit sharing should be conducted based on certain regulations, including the prior ways as the logistic ways to transport palm oil. Besides, the fund allocation should be used for other activities, such as, to get data on smallholders’ plantations, forest rehabilitation, and social protection for palm oil plantation labors.

Sri Widanarni emphasized the budget proportion from palm oil profit sharing would minimally be 80% to develop and maintain ways, while other activities would be maximally 20%. The roles of the province to manage it would cover the discussion of RKP with the regencies/cities, monitor, evaluate the fund allocation to every activity that palm oil profit sharing would fund or had been funded.

“The goals to minimize fiscal gaps among the province and district government, and other regions where they do not produce palm oil, in order to manage externalization that negatively delivers impact and/or escalate equity in one region, would be realized,” she said.

Head of Plantation Agency Central Kalimantan Province, Rizky Ramadhana Badjuri in his report told the goal of the activity would be about to synchronize RKP formulation of palm oil profit sharing in 2024 to be right on targets and be the same as the mandate in the Regulation of Minister of Finance Number 91 / 2023 about Palm Oil Profit Sharing.

“This is the first time that palm oil profits sharing comes to Central Kalimantan Province. Alhamdulilah, we would implement it,” he said. (T2)