Liquid Palm Oil DBH! Sri Mulyani Guyur At Least IDR 1 Billion Per Region Starting June

Illustration (Photo: Doc. Antara)

Minister of Finance (Menkeu) Sri Mulyani today held a working meeting with Commission XI of the DPR regarding the follow-up to the implementation of palm oil profit sharing funds (DBH) that have been mandated in Law (UU) Number 1 of 2022 concerning Central and Regional Financial Relations (HKPD).

According to the Minister of Finance, the results of this meeting will later become the basis for the government to issue Government Regulations (PP) which will then be lowered through the Minister of Finance Regulation (PMK) as technical regulations for implementation.

In his explanation, the Minister of Finance revealed that the total profit-sharing fund contained in the State Budget for the 2023 fiscal year was IDR 136.3 trillion.

"The DBH allocation includes an allocation for DBH oil palm which amounted to Rp3.4 trillion, according to the agreement for a working meeting of the DPR RI Budget Agency with the government," he said at the Senayan Parliament Complex, Jakarta on Tuesday, April 11.

The Minister of Finance explained that the source of this palm DBH fund came from export levies (PE) and also exit duties (BK). It is stated that the portion of the palm oil DBH is 20 percent for provinces, 60 percent for producing districts/cities, and 20 percent for border districts/cities.

"This can be adjusted to the state's financial capacity with a minimum allocation per region for the 2023 fiscal year, which is IDR 1 billion per region," he said.

For information, the government has set the minimum percentage of DBH at 4 percent. So for the provincial level, the calculation is 20 percent x 4 percent = 0.8 percent.

Then, 60 percent of regencies/cities produce x 4 percent = 2.4 percent. Then the next thing is the district/city border of 20 percent x 4 percent = 0.8 percent.

The number of registered areas reaches 350 regions, consisting of producing areas, border areas with producing regions and provincial areas. This also includes four new autonomous regions in Papua," he said.

The Minister of Finance added that the disbursement of palm oil DBH was actually carried out in two stages, namely in the May period and also October every year on condition that the regions had submitted plans for activities and reports on budget realization.

"Because this is the first year, (the disbursement) will go back a little bit to June. However, for the following years it can be completed according to schedule, May and October," closed the Minister of Finance Sri Mulyani.