Bengkulu Discusses Palm Oil Profit Sharing in 2023: Insights into Smallholder Data Revealed

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Illustration of oil palm plantation. Photo by: Sawit Fest 2021 / Yayan Saputra

PALMOILMAGAZINE, BENGKULU – The Bengkulu Province, through its Regional Financial Management Agency, convened a discussion on the 2023 palm oil profit sharing on Monday (4/12) at a hotel in the City of Bengkulu.

The participants included officials from the General Directorate of Treasury, Land Agency, the head of the Regional Finance Management Agency, representatives from districts/cities, Public Works and People’s Housing, and plantation agencies in Bengkulu Province.

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Isnan Fajri, the Regional Secretary of Bengkulu Province, stated that the discussion on palm oil profit sharing was following Regulation of the Minister of Finance Number 91/2023 concerning Palm Oil Plantation Profit Sharing management.

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It was decided that the proceeds from palm oil profit sharing would be allocated towards funding development and infrastructure management, including roads and bridges.

Isnan Fajri also mentioned that it should be used to get data about smallholders or people’s plantations, formulate sustainable palm oil regional action plan, development, and guidance to get Indonesian Sustainable Palm Oil (ISPO) certificate. Beside the fund should be used to rehabilitate forests and areas, protect palm oil plantation workers that have not been registered in social insurance program.

Palm oil profit sharing is part of fund transferred to region or transfer ke daerah (TKD) that should be allocated according to percentage of palm oil and its derivative out fee and export levy. He also hoped that agencies in the province, districts/cities would formulate and allocate the numbers according to every available regulation.

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“I hope that every agency in the province, districts/cities would formulate and share the fund according to every available regulation. Palm oil profit sharing should help the people to get into data about their plantation map, and protect smallholders or workers in social insurance,” the former Regional Finance Management Agency Bengkulu Province said, as Palmoilmagazine.com quoted from the official page of Bengkulu Province, Tuesday (5/12/2023).

The meeting should also get the coordination between the province and districts/cities to formulate the numbers from palm oil profit sharing that reached about Rp 106 billion. It is hoped the numbers would be optimally used to develop infrastructures and others and develop palm oil plantations in the province.

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“It is hoped palm oil profit sharing, from this year (to the next) would be taken for advantages. 80 percent of the allocation should be for infrastructures and 20 percent should be for others,” Isnan Fajri.

For information, the 2023 palm oil profit sharing in Bengkulu reached Rp106 billion with the details:

  1. Bengkulu Province Rp 21,7 billion
  2. Bengkulu Selatan Rp 6,7 billion
  3. Bengkulu Utara Rp 12,7 billion
  4. Rejang Lebong Rp 5,7 billion
  5. Kota Bengkulu Rp 6,1 billion
  6. Kaur Rp 7,8 billion
  7. Seluma Rp 9,6 billion
  8. Mukomuko Rp 16,8 billion
  9. Lebong Rp 4,2 billion
  10. Kepahiang Rp 5,7 billion
  11. Bengkulu Tengah Rp 9 billion. (T2)
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