ATTENDED By The Regent Of Meranti, What Is DBH? This Is Understanding, Type, Up To Benefits

Illustration of tax payments (Doc. Antara)

YOGYAKARTA - The term DBH emerged after the Regent of the Meranti Islands Muhammad Adil agreed in the National Coordination Meeting for Regional Revenue and Expenditure Management throughout Indonesia, Thursday, December 8. Then what is DBH?

DBH is the shortcoming of the Revenue Sharing Fund. Quoting from the site djpk.kemenkeu.go.id, DBH is a fund whose source comes from APBN income allocated to regions based on a certain percentage figure to fund regional needs in the context of implementing decentralization.

The distribution of DBH itself is carried out to balance national development with regional development. In addition, distribution is carried out to reduce inequality between regions that produce natural resources (SDA) and those that are not.

In Indonesia, DBH is divided into two types, namely DBH Tax and DBH Natural Resources. Here's the explanation.

As the name suggests, DBH Tax is the distribution of funds that come from tax revenues. The use of these funds is block grant, namely the use of funds is handed over in full to the regions according to their respective needs. The tax DBH includes several types, namely as follows.

DBH natural resources are distributed based on percentage figures to fund regional needs. DBH natural resources consist of five types, namely as follows.

DBH distribution is carried out with the principle by origin. This means that the portion of DBH distribution for producing regions is greater than the portion of other non-producing regions.

Meanwhile, the distribution of DBH is carried out with the principle of Based on Actual Revenue, meaning that the distribution is based on the realization of revenue for the current fiscal year. This is in accordance with Article 23 of Law 33/2004.

Quoting eiti.esdm.go.id, the purpose of distributing DBH is to balance national development with regional development. Apart from this, in practice there are still many producing regions that are not satisfied with the distribution of DBH that have been running so far.

One of the reasons why the producing area is not satisfied is because many poor people in SDA-rich areas and sometimes the energy supply is still lacking.

The weakness of the DBH distribution is unstable because the amount of DBH to the regions is determined by several factors such as world oil prices and the rupiah exchange rate.

This uncertainty causes the regions to experience an error in determining the estimate of how much DBH will be received. This then raises the question of why the DBH received by the nominal-producing regions is not in line with what is expected. The regional government also complains a lot of uncertainty about DBH because it is considered an obstacle to budget planning in the regions.

The distribution of the Migas DBH was also complained by the Regent of Meranti Muhammad Adil to the Ministry of Finance. He considered that the distribution was unfair.

According to Muhammadi Adil, in 2022, Meranti Regency received a DBH of Rp. 114 billion at an oil price of 60 US dollars per barrel. Meanwhile, in the discussion of the 2023 APBD, the distribution of DBH increased but did not match what was expected. Whereas world oil is at 100 US dollars per barrel.

"But why did our oil increase, the lifting increased, the money was getting less. How is the calculation assumption, how come it only increased by Rp. 700 million," said Muhammad Adil at the National Coordination Meeting for Regional Revenue and Expenditure Management throughout Indonesia, which was held at the Merdu Dang Tower of Riau Bank Riau Riau Kepri Syariah Pekanbaru, Thursday, December 8, 2022, quoted from the official website of the Meranti Regency Government.

That's information related to what DBH is. To get other interesting information, visit VOI.ID.