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Palm Oil Profit Sharing: For the Governance to Deliver the Positive

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Palm Oil Profit Sharing: For the Governance to Deliver the Positive

InfoSAWIT, JAKARTA – In 2022, the Government of Indonesia officially published the Laws Number 1 / 2022 that was about Financial Connection between Central and Regional Governments. There are chapters about profit sharing that becomes the significant instrument to support development particularly in palm oil plantation sectors.

In details, the government published the Government’s Regulation Number 38/2023 about Palm Oil Profit Sharing and the Regulation of Minister of Finance Number 91/2023 about Palm Oil Profit Sharing Management.

Meanwhile, Chairman of POPSI, Pahala Sibuea said that palm oil profit sharing that reached 20% for its governance would create big chances to escalate efficiency, sustainability, better management in the industry. The main target is about to make sure that palm oil would contribute not only in economy significantly but also to get environmental protection and sustainability.

“The significant things in this context should also cover plantation governance, sustainable practice implementation, and to escalate planters’ welfare. By having adjustable fund allocation, it would realize to increase cultivation team capacity, trainings, and development to realize the best practices,” he said.

In association with RAD KSB, palm oil profit sharing should be the important instrument to accelerate agrarian reformation, distribute natural resources equally. The sustainability in palm oil sectors should be placed as the core of the reformation, maximally delivering mandate to planters, the local, and environment.

“By optimizing palm oil profit sharing to get palm oil governance better, it is hoped to create more sustainable and positive impacts in the long period. The discussion would be essential to formulate the concrete action plans to realize the vision of inclusive and sustainable economic development in palm oil sector,” he said. (T2)

for more, please read Majalah InfoSAWIT, April 2024