JAKARTA – The finance ministry has started distributing what is called palm oil revenue sharing fund (DBH palm oil) to 350 palm oil producing regions. Total amount of DBH palm oil that will be distributed to the regions during the period of September – December 2023 is Rp3.4 trillion.
Based on the ministry’s data, Riau province, which is Indonesia’s largest producer of palm oil, is the biggest recipient of the DBH palm oil at a total of Rp83.13 billion, followed by North Sumatera province at a total of Rp74.86 billion. The third is West Kalimantan with a total of Rp65.66 billion, then Central Kalimantan at Rp60 billion, South Sumatera at Rp51.2 billion, Ketapang regency at Rp48.3 billion, Kotawaringin Timur regency at Rp46.48 billion miliar, East Kalimantan at Rp43.4 billion, Rokan Hilir regency at Rp39.3 billion, and Jambi at Rp38.33 billion.
The distribution of the DBH palm oil is based on the finance minister regulation (PMK) No.91/2023 which was signed by Finance Minister Sri Mulyani on Friday, 08 September 2023.
Riau Governor Syamsuar warmly welcomed the DBH distribution, saying that the efforts of Indonesian governors of palm oil producing provinces to get such fund for the palm oil producing regions have finally paid off. “Our struggle has finally paid off,” Syamsuar said in a press release on Monday.
But despite the fact, the governor said that he will discuss it further with other governors of palm oil producing regions in Indonesia. “We hope there will be further discussions with finance minister regarding the DBH distribution with the aim to ensure fairness of such distribution based on the potential of each producing region,” he said.
Based on data from Statistics Indonesia (BPS), the total areas of Indonesia’s oil palm plantations in 2022 reached 14.99 million hectares. Riau province is the largest producer in Indonesia with a total area of oil palm plantations at 2.86 million hectares or 19% of the total areas of oil plantations in Indonesia.
West Kalimantan ranks the second with a total area of 2.01 million hectares, followed by Central Kalimantan at 1.84 million hectares.
Regarding the fairness of DBH received by Riau, Syamsuar said that he could not yet ensure it. “The central government has never involved us as producing regions in discussions to determine the DBH palm oil.
Meanwhile, the Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono also warmly welcomed the DBH palm oil. “The regional governments will further enjoy the benefits of oil palm plantations in their respective regions,” he said.
The finance ministry has stated that the DBH palm oil will be used to finance the development and maintenance of road infrastructure and bridges outside of oil palm plantation areas in the producing regions. (*)
Source: sawitkita.id
