The provincial government seeks to channel palm oil and reforestation revenue-sharing funds into employment social security coverage for vulnerable workers, strengthening long-term social welfare alongside regional development.
PALMOILMAGAZINE, Palangka Raya, Indonesia — The Central Kalimantan Provincial Government is seeking to optimize Palm Oil Revenue Sharing Funds (DBH Sawit) and Reforestation Revenue Sharing Funds (DBH Dana Reboisasi) not only as financing sources for regional development but also as strategic instruments to expand employment social security coverage for vulnerable workers in the palm oil plantation and forestry sectors.
The initiative was highlighted during a Focus Group Discussion (FGD) on optimizing the use of Palm Oil and Reforestation Revenue Sharing Funds for employment social security protection, held at M Bahalap Hotel in Palangka Raya on Tuesday.
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The forum was officially opened by Anang Dirjo, Assistant for Economic Affairs and Development at the Central Kalimantan Regional Secretariat, representing Provincial Secretary Linae Victoria Aden.
In his remarks, Anang praised BPJS Ketenagakerjaan and the Directorate General of Fiscal Balance of the Ministry of Finance for organizing the discussion, describing it as an important platform for strengthening collaboration between the central government, regional administrations, and other stakeholders.
He said the forum represents a key step toward accelerating employment social security coverage, particularly for vulnerable workers who form the backbone of Central Kalimantan’s palm oil and forestry industries.
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“The government has established a clear legal framework through Ministry of Finance Regulations (PMK) No. 10/2026 and No. 16/2026. These regulations enable regional governments to utilize Palm Oil and Reforestation Revenue Sharing Funds to support employment social security programs,” Anang said in a statement cited by PalmOilMagazine.
He emphasized that the new regulations position worker protection as an integral component of sustainable regional development rather than merely a complementary social program.
Despite the policy support, Anang acknowledged that coverage remains well below target. As of July 24, 2026, BPJS Ketenagakerjaan data showed that only 12,448 workers had been enrolled under the DBH Sawit and Reforestation Fund scheme, representing just 20.07% of the province’s target of 80,926 workers.
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Meanwhile, Central Kalimantan’s Universal Coverage Jamsostek (UCJ) had reached 39.89%, significantly below the province’s 2026 target of 73.10%.
“These figures require serious attention. Stronger collaboration among all stakeholders is essential to accelerate worker protection,” Anang said.
He added that maximizing the use of the revenue-sharing funds will require closer coordination between local governments, BPJS Ketenagakerjaan, and the Ministry of Finance to ensure the benefits directly reach eligible workers.
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According to Anang, employment social security should be viewed as a long-term social investment that enhances public welfare while reinforcing the foundation of sustainable regional development.
“We are optimistic that Central Kalimantan can become one of Indonesia’s leading provinces in implementing worker protection through the effective utilization of revenue-sharing funds,” he said.
During the same event, Faisal Rahman, Head of BPJS Ketenagakerjaan’s Kalimantan Regional Office, who joined virtually, commended the Central Kalimantan Provincial Government and district and municipal administrations for their commitment to optimizing the use of Palm Oil and Reforestation Revenue Sharing Funds.
Faisal stressed that sustainable development must go hand in hand with stronger social protection systems for workers.
“The success of development should not be measured solely by economic growth, but also by how well workers are protected against social and occupational risks,” he said.
He noted that expanding employment social security coverage requires collective action involving the central and regional governments, BPJS Ketenagakerjaan, businesses, academic institutions, and other stakeholders.
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BPJS Ketenagakerjaan expects the discussion to produce practical recommendations that will accelerate the optimal use of Palm Oil and Reforestation Revenue Sharing Funds across regional governments.
“We hope Central Kalimantan will demonstrate that these revenue-sharing funds can support not only physical infrastructure development but also stronger social protection and improved public welfare,” Faisal concluded. (P2)
