PALMOILMAGAZINE, PALANGKA RAYA – Sri Widanarni, Assistant for Economic Affairs and Development, opened the Budget Discussion Meeting for Palm Oil Revenue Sharing Fund (DBH Sawit) in Central Kalimantan at the M Bahalap Hotel on Wednesday, December 11, 2024.
In her speech, read by the Assistant for Economic Affairs, the Acting Secretary of the Regional Government of Central Kalimantan emphasized that, in line with the Ministry of Finance Regulation (PMK) No. 91 of 2023 on Palm Oil DBH Management, both the provincial government and the 14 districts/cities in Central Kalimantan will receive varying allocations of DBH funds.
She explained that the palm oil DBH is allocated based on the percentage of income from export duties and levies on palm oil, crude palm oil (CPO), and/or its derivatives. “The allocation of DBH is determined by the realization of national income from the previous year. The distribution is 20% for the province, 60% for producing districts/cities, and 20% for neighboring districts/cities,” she stated, as quoted by Palmoilmagazine.com on Saturday, December 14, 2024.
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She also mentioned that the DBH allocation considers several indicators, including the size of palm oil plantations, productivity levels, and other indicators set by the Minister. “The DBH funds can be used for infrastructure development and maintenance, including roads and bridges management,” she added.
“Other activities specified by the Minister include: mapping smallholder palm oil plantations; drafting regional action plans for sustainable palm oil; training and assisting with Indonesian Sustainable Palm Oil (ISPO) certification; forest and land rehabilitation; and providing social protection for workers in plantations who are not yet registered in social security programs, as per legal provisions,” she continued.
The palm oil DBH budget allocation stipulates that at least 80% should be used for road infrastructure development and maintenance, while a maximum of 20% can be allocated for other activities.
The provincial government’s role in managing DBH is to facilitate discussions of the RKP with district/city governments and to monitor and evaluate the allocation and implementation of activities funded by DBH. “This aims to reduce fiscal disparities between the central government and regions, as well as between producing and non-producing areas,” she concluded.
In line with this, the Head of the Central Kalimantan Plantation Service, H. Rizky R. Badjuri, reported that the meeting aimed to synchronize the design of DBH activities and budgets for 2025 to ensure that they are targeted and aligned with the provisions of PMK No. 91 of 2023.
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He also mentioned that the event was attended by 200 participants from various provincial and district/city agencies, including the Provincial and District Planning Agencies, Regional Finance and Asset Agencies, Public Works and Housing Services, Plantation Services, Manpower and Transmigration Services, Forestry Services, Environmental Services, Regional Revenue Agencies, as well as the DBH Palm Oil Team from provincial and district governments in Central Kalimantan.
“Speakers included representatives from the Directorate General of Financial Balance of the Ministry of Finance, the Regional Infrastructure Facilitation Center of the Ministry of Public Works and Public Housing, the Directorate of Regional Finance and Transfer Fund Facilities of the Ministry of Home Affairs, the Secretariat of the Directorate General of River Basin and Forest Rehabilitation of the Ministry of Environment and Forestry, and the Directorate of Palm Oil and Other Palm Products of the Ministry of Agriculture,” said Rizky. (P2)
