InfoSAWIT, PALANGKA RAYA – Sri Widanarni, Assistant for Economic and Development Affairs, opened the Meeting on the Discussion of Activity Plans and Budget (RKP) for the Palm Oil Revenue Sharing Fund (DBH) across Central Kalimantan, held at the M Bahalap Hotel on Wednesday, December 11, 2024.

In a speech read by the Assistant for Economic Affairs, the Acting Secretary of the Central Kalimantan Provincial Government emphasized that in accordance with the Minister of Finance Regulation (PMK) Number 91 of 2023 regarding the Management of Palm Oil DBH, the provincial government and 14 district/city governments in Central Kalimantan will receive varying allocations of palm oil DBH for each region.

He explained that the palm oil DBH is allocated based on a percentage of revenue from export duties and palm oil, crude palm oil (CPO), and/or its derivatives. "The allocation of palm oil DBH is determined based on the realization of state revenue in the previous year. The distribution is 20% for the province, 60% for producing districts/cities, and 20% for districts/cities that border directly with producing areas," he stated, as quoted by InfoSAWIT on Saturday (December 14, 2024).

He also mentioned that the amount of palm oil DBH allocation considers several indicators, including the area of palm oil plantations, productivity of palm oil land, and other indicators set by the Minister. "The palm oil DBH funds can be used to finance the development and maintenance of infrastructure, including the management of roads and bridges," added the Assistant for Economic Affairs.

"Other activities set by the Minister include: data collection of smallholder palm oil plantations; preparation of sustainable palm oil regional action plans; training and assistance for Indonesian Sustainable Palm Oil (ISPO) certification; forest and land rehabilitation; and social protection for plantation workers not yet registered in social security programs, in accordance with legal provisions," he continued.

The budget proportion for palm oil DBH stipulates a minimum of 80% for the development and maintenance of road infrastructure, while a maximum of 20% is used for other activities.

The provincial government's role in managing palm oil DBH is to facilitate discussions of the RKP with district/city governments, as well as to monitor and evaluate the allocation and technical implementation of activities funded by palm oil DBH. "This aims to reduce fiscal disparities between the central government and regions, as well as among non-producing areas," he concluded.

In line with this, the Head of the Central Kalimantan Plantation Office, H. Rizky R. Badjuri, reported that this meeting aims to synchronize the draft activities and budget for palm oil DBH for the 2025 fiscal year to ensure they are targeted and in accordance with the mandate of PMK Number 91 of 2023.

He also conveyed that the event was attended by 200 participants from various provincial and district/city agencies, including the Provincial and District Planning Agencies, Regional Finance and Asset Management Agencies, Public Works and Housing Agencies, Plantation Agencies, Manpower and Transmigration Agencies, Forestry Agencies, Environmental Agencies, Regional Revenue Agencies, as well as the provincial and district palm oil DBH teams across Central Kalimantan.

"As speakers, representatives from the Directorate General of Financial Balance of the Ministry of Finance, the Center for Regional Infrastructure Facilitation of the Ministry of Public Works and Public Housing, the Directorate of Transfer Fund Facilities and Regional Financing of the Directorate General of Regional Financial Management, the Secretariat of the Directorate General of River Basin Control and Forest Rehabilitation of the Ministry of Environment and Forestry, as well as the Directorate of Palm Oil and Other Palms of the Ministry of Agriculture were present," said Rizky. (T2)