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North Sumatera Proposed to Revise Regulation No 33/2004 to get Palm Oil Profit Sharing



North Sumatera Proposed to Revise Regulation No 33/2004 to get Palm Oil Profit Sharing

InfoSAWIT, NORTH SUMATERA – For the profit sharing from palm oil plantations which was not got for all these years, North Sumatera Province proposed to revise Regulation Number (No.) 33 / 2004 to Coordinator Ministry in Economy.

Vice Governor of North Sumatera, Musa Rajekshah communicated with central government about it in the recent days. In the meeting with Coordinator Minister in Economy, Musa proposed to revise the regulation that regional governments where palm oil develops can get profit sharing from the central government.

“It means, as one palm oil producer, North Sumatera will get it because many elements are pressured, starting from environment, social, and economy,” he said, as quoted from Media Indonesia, Sunday (9/1/2022).

He continued, that the fund will be used to improve the damages in infrastructures because of crude palm oil (CPO) transportation, and others. For all these years, there is no such fund to improve them.

If the proposal is considered and realized, there will be significant infrastructure development and regional income. The aspiration to get palm oil profit sharing was told since the early of 2020. At the time, 21 palm oil plantation centers or regions in Indonesia conducted meeting to get it by revising the regulation about Financial Balance between Regional and Central Government.

Meanwhile, Governor of North Sumatera, Edy Rahmayadi thought, the province earns it for having massive natural resources in the sector. In North Sumatera, palm oil plantations lay about 1,3 million hectares. Of the numbers, 66% belong to PT Perkebunan Nusantara and the rests belong to private sectors. The province can deliver CPO exports up to 3,6 million tons in every year. But North Sumatera does not get contribution directly from the natural resources.

Edy thought, palm oil profit sharing will multiply budgets of regional development significantly, namely about way where high ways get the impacts from plantation sectors, including palm oil. (T2)