InfoSAWIT, JAKARTA – The government has officially halted the distribution of the Palm Oil Revenue Sharing Fund (DBH), as stated in the Indonesian Minister of Finance's Decree No. 43/KM.7/2024. This decision also includes the cessation of DBH for Forestry Natural Resources and Tobacco Excise for the 2024 Fiscal Year.

According to documents obtained by InfoSAWIT on February 13, 2025, the regulation stipulates the cessation of three types of DBH: DBH for Palm Oil, DBH for Forestry Natural Resources, and DBH for Tobacco Excise. The details of the cessation are adjusted according to provinces, districts, and cities listed in the annex of the decree.

"The Palm Oil Revenue Sharing Fund, Forestry Natural Resources Revenue Sharing Fund, and Tobacco Excise Revenue Sharing Fund that are halted as stated in the first dictum will become Surplus Budget Calculations in the State General Cash Account," the decree states.

This decision was signed by the Director General of Financial Balance, Luky Alfirman, on December 27, 2024. The cessation of DBH distribution is expected to impact the finances of palm oil-producing regions and the forestry sector, as these funds were previously a significant source of revenue for local governments.

With this policy, local governments are expected to seek new strategies for managing revenue and developing the palm oil sector sustainably without relying on the DBH previously distributed by the central government. (T2)