PALMOILMAGAZINE, SAMPIT – The Chairman of the Kotawaringin Timur Regional House of Representatives (DPRD), Rimbun, has urged immediate action against large private companies operating in the district without a Hak Guna Usaha (HGU) permit. He emphasized that the absence of HGU hinders the region’s revenue growth, particularly from the Land and Building Rights Acquisition Fee (BPHTB).
“According to Plantation Law No. 39, companies must obtain a Business License (IUP) before operating. However, our main issue is that we cannot maximize regional revenue because these companies lack HGU, preventing the collection of BPHTB,” Rimbun stated, as quoted by Palmoilmagazine.com from tabengan.co.id, Friday (Feb 28, 2025).
He revealed that 16 companies in Kotim have been operating without HGU for decades, despite the potential BPHTB revenue for the local government reaching IDR 800–900 billion.
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“This is why we are urging the government—both local and central—to address this issue. It is crucial for increasing regional revenue,” he stressed.
Rimbun warned that the situation results in significant financial losses for the district, as it fails to leverage one of its largest potential revenue sources. The estimated BPHTB loss from these companies stands at IDR 844.5 billion.
He hopes the government will take decisive action to regulate these companies, ensuring increased regional income and improving the welfare of Kotim’s residents. (P2)
