JAKARTA – President Joko Widodo (Jokowi) has signed the government regulation (PP) No.38/2023 on palm oil revenue sharing fund (DBH sawit), which will become the legal basis for disbursement of ‘DBH sawit’ to regions.
The DBH is given to palm oil producing regions with the aim to reduce fiscal inequality in the regions. The share of DBH for each region will be different, depending on several factors which are determined by the central government.
The Association of Oil Palm Farmers’ (SPKS) Secretary General Mansuetus Darto hopes that the heads of regional governments who will receive the DBH will allocate the fund for empowering the farmers and accelerating the Indonesian Sustainable Palm Oil (ISPO) certification among the smallholders.
“DBH should be based on action plans of the producing regions. The regional governments (Pemda) should also determine their priorities in using the fund. It should be also used to solve all problems in the oil palm plantations, including mapping of oil plantations and sustainability certifications that will allow farmers to comply with the European Union (EU) regulations,” Mansueto said on Thursday, 27 July 2023.
According to Mansueto, regional governments should not use the ‘DBH sawit’ for oil palm expansion with the aim of increasing their share of DBH. But the governments should be consistent in increasing the production of sustainable palm oil in their respective regions.
Previously, the finance ministry stated that there are 350 palm oil producing regions that will receive the DBH at a total of Rp3.4 trillion. The finance ministry’s Financial Balance Director General Luky Alfirman confirmed that the DBH has been included in the state budget (APBN) 2023.
If all goes well as planned, then the DBH disbursement will start in August 2023.
“Our target by the end of this month or early next month the PP on the DBH will be issued. Then it will be followed with the issuance of a finance ministry regulation (PMK) as implementing regulation, so that the DBH can be distributed soon,” Luky said as reported by sindonews. (*)
Source: halloriau.com
