PALMOILMAGAZINE, JAKARTA – The Indonesian government has officially stopped the distribution of the Palm Oil Profit Sharing Fund (DBH), as stipulated in Minister of Finance Decree No. 43/KM.7/2024. The decision also includes the termination of DBH for Forestry Natural Resources and DBH for Tobacco Excise Revenue for the 2024 Fiscal Year.
According to documents obtained by Palmoilmagazine.com on Thursday (Feb 13, 2025), the decree outlines the cessation of three types of DBH: Palm Oil DBH, Forestry Natural Resources DBH, and Tobacco Excise DBH. The distribution halt is specified for provinces, regencies, and cities listed in the decree’s annex.
“The Palm Oil Revenue Sharing Fund, Forestry Natural Resources Revenue Sharing Fund, and Tobacco Excise Revenue Sharing Fund, which have been halted as stated in the First Clause, will be classified as Excess Budget Calculation in the State General Treasury Account,” the decree states.
This decision was signed by Director General of Fiscal Balance, Luky Alfirman, on December 27, 2024. The suspension of DBH distribution could impact the financial stability of palm oil-producing regions and the forestry sector, as these funds were previously a key source of local government revenue.
With this policy in place, regional governments are now expected to seek alternative strategies for managing income and fostering sustainable palm oil sector development without relying on central government revenue-sharing funds. (P2)
