Two Provinces Proposed Sharing Profits from Palm Oil

Two Provinces Proposed Sharing Profits from Palm Oil

InfoSAWIT, PONTIANAK – The central government through Ministry of Finance is urged to run sharing profit or dana bagi hasil (DBH) to the provinces producing palm oil plantations. There should be new regulation to realize fairness and equality of economy for the regions.

Governor of West Kalimantan, Sutarmidji and Vice Governor of East Kalimantan, Hadi Mulyadi proposed it in the Borneo Forum III in Hotel Ibis, Pontianak, Wednesday (20/3/2019).

Sutarmidji mentioned that West Kalimantan now has about 1,5 million hectares (ha) of palm oil plantations (and the second biggest areas in Indonesia as the crude palm oil (CPO) producers). The province should actually get proportial sharing profits. This refers to the regulation about the financial balance between the central and regional governments. Actually the policy could be implemented about the profit sharing.

“We would struggle for it. If the profit sharing is realized, it could be given and shared to the smallholders in the regions in the form of empowerment and increasing their financial institution in the villages, namely in the palm oil centers in the province,” he said in the official statement to InfoSAWIT.

Sutarmidji did hope that the downstream industries could be developed in the province so that the people could enjoy and buy the cheaper cooking oil.

“For all these years, the biggest additional value from palm oil downstream industries could be for the central government rather than it in palm oil plantaitons which are as the upstream industries,” he said.

Meanwhile, Vice Governor of East Kalimantan, Hadi Mulyadi also urged that the profit sharing could be for the palm oil producer regions. It is important to be used to develop the regions, such as, infrastructure.

“There should be profit sharing by revising the financial regulation between the central and regional governments,” Hadi said. (T2)



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