PALMOILMAGAZINE, PONTIANAK – The Directorate General of Taxes (DGT) in West Kalimantan is intensifying its supervision of the palm oil plantation sector to enhance tax compliance and increase contributions to state revenue. This initiative addresses the significant number of business actors in the sector who have yet to fully meet their tax obligations.
Inge Diana Rismawanti, Head of the West Kalimantan DGT Regional Office, highlighted persistent non-compliance among individual and corporate taxpayers in the plantation sector. “Based on data from the West Kalimantan Plantation and Livestock Service, numerous taxpayers in the palm oil sector are not fulfilling their tax responsibilities. We urge all parties to prioritize education, supervision, and law enforcement to support state revenue and regional development,” she stated, as quoted by Palmoilmagazine.com from Antara on Monday (November 4, 2024).
To optimize tax collection, the West Kalimantan DGT participated in a focused discussion led by the Head of the West Kalimantan Regional Police, Inspector General Pipit Rismanto. The meeting involved various stakeholders, aiming to enhance state revenue from the palm oil sector through a coordinated approach combining enforcement and oversight.
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As of August 31, 2024, the DGT reported tax revenue of IDR 6.43 trillion, achieving 56.99% of its annual target. Key contributors to tax revenue growth include the wholesale trade sector, the agriculture, forestry, and fisheries sector (up 27.04%), government administration, and transportation sectors.
Heronimus Hero, Head of the West Kalimantan Plantation and Livestock Service, emphasized the economic significance of oil palm as the region’s most strategic plantation commodity. West Kalimantan produces approximately 32 million tons of fresh fruit bunches (FFB) and 6 million tons of crude palm oil (CPO) annually.
However, according to Heronimus, there are still many palm oil investors who operate in West Kalimantan but have offices outside the province. This causes the potential for money circulation from the palm oil business sector to leave West Kalimantan. There are currently 368 plantation companies operating in West Kalimantan, mostly in Ketapang District, with 134 Palm Oil Mills (PKS) across the province.
Heronimus also explained that some mills in West Kalimantan do not have their own plantations as they were previously allowed to operate without land. However, the government now requires each mill to have a minimum of 20 percent of its raw material needs from its own plantation, to support the sustainability of the local palm oil industry.
DGT West Kalimantan hopes that education and law enforcement can increase tax compliance in the palm oil sector. In addition, the optimization of tax revenue from this sector is expected to have a positive impact on the development of West Kalimantan’s infrastructure and economy, while maintaining the balance of the potential of regional natural resources for the welfare of the local community. (P2)
