PALMOILMAGAZINE, BANDUNG – The Plantation Agency of Central Kalimantan Province participated in a technical development meeting on optimizing the palm oil profit-sharing fund. The meeting, organized by the Ministry of Finance, took place at the General Directorate of Customs office in Bandung, West Java Province. The focus was on evaluating the current palm oil profit-sharing system and preparing for fund management in 2025.
The palm oil profit-sharing system is regulated by Law No. 1/2022 concerning Financial Relations between the Central and Regional Governments. Its primary goals are to reduce the fiscal gap between central and regional governments, address negative externalities, and promote equity in non-palm oil-producing regions.
Chairwoman of the Non-Natural Resource Palm Oil Profit Sharing Team, Mariana Dian Safitri, highlighted that a decrease in export duties affected the transfer of funds to regions. “In the first phase, 329 regions received profit-sharing funds, while 20 did not. In the second phase, 168 regions received funds, while 100 regions required revisions. Of those, 76 qualified for funding, but 24 did not meet the requirements, and 181 regions failed to submit the necessary documentation for the second phase transfer,” she explained, as quoted by Palmoilmagazine.com on Sunday, September 29, 2024.
Meanwhile, Rizky Ramadhan Badjuri from the Central Kalimantan Plantation Agency emphasized the Ministry of Agriculture’s key role in providing data on smallholders’ plantations and supporting the development of the Indonesian Sustainable Palm Oil (ISPO) certification.
“This data is based on the General Directorate of Plantation’s Decree No. 37/2024 on Guidelines for Issuing Cultivation Documents,” Badjuri stated, adding that the certification process is progressing according to regulations.
The meeting was attended by some related ministries’ officials, such as, Chairman of Land Resource Group, Ministry of Agriculture, Rhomauli Siagian, and Head of Sub Forest Reforestation Directorate, Ministry of Environment and Forestry, Maragona Purbo. They told their opinions that it would be significant to get collaboration among many sectors to increase palm oil profit sharing quality in palm oil plantation sectors. (P2)
