
InfoSAWIT, PALANGKA RAYA – Palm oil plantations dominate land use in Central Kalimantan, covering an area of 2.3 million hectares, according to data from the Investment Coordinating Board and One-Stop Integrated Services (DPMPTSP) of Central Kalimantan Province in 2023. Senator Agustin Teras Narang believes that this significant potential should be harnessed to enhance the local economy.
"From this land area, the provincial government is projected to receive revenue sharing of around IDR 23.8 billion by 2025," Teras stated, as quoted by InfoSAWIT from Antara on Tuesday (December 17). When totaled across all 14 regencies and cities in Central Kalimantan, the revenue could reach IDR 117.89 billion. Kotawaringin Timur Regency is expected to be the largest recipient with IDR 16.6 billion, while Barito Selatan will receive the lowest share of IDR 2.56 billion.
However, according to Teras, this revenue is still significantly lagging behind the mining sector, which contributes IDR 1.79 trillion to the province. "This gap indicates the need for in-depth analysis to optimize local revenue from the plantation sector," emphasized the former two-term Governor of Central Kalimantan.
Teras highlighted the importance of downstreaming palm oil products as a means to increase economic value. "The production from 2.3 million hectares of palm oil land in Central Kalimantan, particularly Crude Palm Oil (CPO) and its derivatives, has great potential to drive the local economy and create new jobs," he explained.
He also stressed the need for an evaluation of the balance of revenue between the central and local governments from natural resources. He noted that, historically, a significant portion of revenue has flowed to the central government rather than to producing regions. "The central government needs to reassess this policy to ensure that regions benefit more," he added.
In addition to downstreaming, Teras called for the reinvestment of palm oil production revenues to improve the quality of life for local communities. Investments in infrastructure, education, and health services should be prioritized in palm oil-producing areas.
"We must ensure that as palm oil plantations grow, the development of roads, health services, and education systems does not lag behind. This is a right of local communities that must be fought for," he stated.
He urged all parties, including local governments and the private sector, to monitor investments in this sector to ensure they positively impact community welfare. "This significant potential must be utilized for the advancement of the region and its people. We cannot afford to be complacent," he concluded. (T2)