InfoSAWIT, JAKARTA – The government in 2023 Expenditure allocated Palm Oil Plantation Profit Sharing that reached Rp 3,4 trillion. The numbers were from the agreement between the government and Indonesian Legislator Budget Agency as it is regulated in the Laws Number 28 / 2022 about 2023 Expenditure and President’s Regulation Number 130 / 2022 about the Details of 2023 Expenditure.
Minister of Finance, Sri Mulyani Indrawati said that in 2023 Expenditure, the total profit sharing to be allocated would be Rp 136,3 trillion. The numbers are included palm oil profit sharing which is identified to be Rp 3,4 trillion based on the agreement in the meeting with Indonesian Legislators Budget Agency and the government.
To support palm oil profit sharing distribution, the government is formulating Government’s Regulation Drat about Palm Oil Plantation Profit Sharing. In the progress, the government is consulting with Commission XI Indonesian Legislators that deals with finance.
In the meeting, profit sharing would be from palm oil export tax and levy. The numbers of portion would be minimally 4% and could be more by noticing the capability of finance of this country.
The formula of division to the regions would be 20% for provinces, the district/city would get 60%, and district/city in borders would be 20%. It means, if profit sharing assumption is 4%, the province would get 0,8%, district/city that produces palm oil would get 2,4%, and district/city in border would get 0,8%. Besides, there would be minimum allocation per region in 2023 which is, Rp1 billion.
Palm oil profit sharing would be for developing, maintaining infrastructure, and other strategic activities that Ministry of Finance would determine. Palm oil profit sharing would not reduce the allocation that region would develop through physical Special Allocation Fund and/or other infrastructure programs.
The meeting also reveal palm oil profit sharing would be in two phases in one year which is in May and October. Every period the numbers would be 50% by qualifying terms and conditions of distribution, such as, the plans of activity and realization reports. In 2024 and the rests, palm oil profit sharing to propose would be Rp 3 trillion.
“We would complete the draft and just like what we said before, if the drafts could be accomplished in April or in the early of May, regulation of minister of finance, the socialization can be running. We would immediately pay the first phase,” Sri Mulyani said in the meeting with Commission XI Indonesian Legislators in Jakarta, Tuesday (11/04/2023). (T2)
