Palm Oil Profit Sharing Scheme Set to Launch Pending Presidential Approval

Palm Oil Magazine
Doc. Sawit Fest 2021 / Budi Ansyah

PALMOILMAGAZINE, JAKARTA – Luky Alfirman, the General Director of Financial Balance at the Ministry of Finance, announced during an online press conference of APBN KiTa in Jakarta on Monday (24/7/2023) that the Government’s Regulation concerning Palm Oil Profit Sharing is on track to be finalized in the early part of August 2023.

Luky mentioned that their goal is to complete the draft of the government’s regulation by the last days of this month or the beginning of August 2023. Once the draft is ready, it will be followed by the publication of the regulation by the Minister of Finance, and the sharing process will be promptly initiated thereafter.

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Ministry of Finance is waiting for the agreement (approval) from President Joko Widodo to publish the regulation about palm oil profit sharing that would reach Rp 3,4 trillion. It is planned that the numbers would be allocated to 350 regions in Indonesia according to the regulation. 30 provinces as palm oil producers would get 20 percent; 240 districts/cities as palm oil producers would get 60 percent; and 80 districts/cities in the borders with palm oil producer regions would get 20 percent.

Every province would get about Rp 1 billion to Rp 82,1 billion, the districts/cities as palm oil producers would get about Rp 2,46 billion to Rp 49,5 billion, while the districts/cities in the border with palm oil producer regions would get about Rp 1 billion to Rp 14,8 billion.

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Vice Minister of Finance, Suahasil Nazara said that palm oil profit sharing is needed namely to improve access and facilities in palm oil plantation in many regions. “One thing to use palm oil profit sharing is to improve access or ways in palm oil plantations where they are always in damage,” he said, as quoted from Antara.

It is hoped palm oil profit sharing would deliver the positive for palm oil plantations and the areas around by escalating the infrastructures that encourage productivity and development in this sector. Besides it is hoped to deliver social and economic advantages for the people in the regions that got it. (T2)

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