PALMOILMAGAZINE, PALANGKARAYA – Sri Widanarni, Assistant in Economy and Development at the Central Kalimantan Secretariat, chaired a meeting to discuss the Activity and Budget Draft of Palm Oil Profit Sharing in Central Kalimantan Province. The meeting took place at the hall of the Research and Development Regional Development Plan Agency of Central Kalimantan Province. Widanarni relayed the directive from the Vice Governor of Central Kalimantan stressing the importance of palm oil profit sharing as a vital source of income for the regions on Monday (1/4/2024).
Palm oil profit sharing entails allocating a percentage of income from crude palm oil and its derivative products’ out fee and levy. According to the directive, 20% of palm oil profit sharing is designated for the related province(s), 60% for regencies/cities that produce palm oil, and 20% for other regencies/cities that directly border producer regencies/cities.
Widanarni emphasized that palm oil profit sharing should be earmarked for funding development activities and infrastructure maintenance, including roadways and other relevant projects as determined by the ministry. Additionally, she highlighted the need for improving roads and bridges traversed by CPO and fresh fruit bunch (FFB) trucks, as reported by Palmoilmagazine.com on Tuesday (2/4/2024), citing the official page of Central Kalimantan Province.
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The infrastructures that would be funded by palm oil profit sharing should be conducted based on certain regulations, including the prior ways as the logistic ways to transport palm oil. Besides, the fund allocation should be used for other activities, such as, to get data on smallholders’ plantations, forest rehabilitation, and social protection for palm oil plantation labors.
Sri Widanarni emphasized the budget proportion from palm oil profit sharing would minimally be 80% to develop and maintain ways, while other activities would be maximally 20%. The roles of the province to manage it would cover the discussion of RKP with the regencies/cities, monitor, evaluate the fund allocation to every activity that palm oil profit sharing would fund or had been funded.
“The goals to minimize fiscal gaps among the province and district government, and other regions where they do not produce palm oil, in order to manage externalization that negatively delivers impact and/or escalate equity in one region, would be realized,” she said.
Head of Plantation Agency Central Kalimantan Province, Rizky Ramadhana Badjuri in his report told the goal of the activity would be about to synchronize RKP formulation of palm oil profit sharing in 2024 to be right on targets and be the same as the mandate in the Regulation of Minister of Finance Number 91 / 2023 about Palm Oil Profit Sharing.
“This is the first time that palm oil profits sharing comes to Central Kalimantan Province. Alhamdulilah, we would implement it,” he said. (T2)
