PALMOILMAGAZINE, TANJUNG SELOR – Yansen TP, the Vice Governor of North Kalimantan, has welcomed the long-awaited Government’s Regulation Number 38/2023 regarding Palm Oil Plantation Profit Sharing. This regulation, seen as a positive step, holds the potential to address fiscal gaps and elevate the well-being of the people in Indonesia.
“The introduction of this regulation is a significant development that many palm oil-producing regions, including North Kalimantan, have eagerly awaited,” stated Yansen. This sentiment was captured in a report by Palmoilmagazine.com, referencing the official page of North Kalimantan Province on Tuesday, August 8, 2023.
Palm oil profit sharing assumes a crucial role within the framework of Laws Number 1/2022 concerning Financial Connections between the Central and Regional Governments. Yansen expressed his belief that this regulation is the culmination of prolonged efforts and struggles involving palm oil-producing regions across Indonesia.
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Within the realm of palm oil plantations, the profit sharing allocated by the central government to various regions is instrumental in curbing fiscal disparities between the government and regions where palm oil cultivation may not be prevalent. This approach aims to promote a more equitable distribution of resources and financial benefits.
Yansen TP mentioned Ministry of Finance allocated palm oil profit sharing to 350 regions, including the regions in border with palm oil districts and provinces that got impacts from palm oil industries. The fund allocation would be about Rp 3,4 trillion in total and would consider some factors, such as, the plantations, area productivity, and other indicators.
The regulation is the big leap to minimize economic gap among the central and regional governments, deliver real impact for the regions that involve in palm oil industries. Palm oil profit sharing is not the financial achievement only but also the emphasize of social responsibility of the government to encourage the people’s welfare in palm oil plantation centers. (T2)
