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Palm Oil Profit Sharing: Dominantly for Infrastructure – Only 10 Percent for Sustainable Palm Oil Development



Foto by Dea Kinanti_Sawitfest 2021/ilustration of plantation
Palm Oil Profit Sharing: Dominantly for Infrastructure – Only 10 Percent for Sustainable Palm Oil Development

InfoSAWIT, KONAWE UTARA – Regent of Konawe Utara, Ruksamin said that palm oil plantations in the regency laid about 23.850 hectares in 2023. The government’s plantations laid about 4.455 hectares; big plantation companies/plasma laid about 13.359 hectares, and independent smallholders’ plantations laid about 6.036 hectares.

He also told that the government published regulation about palm oil profit sharing which the lowest 4% (four percent) from the revenue derived from, the first, out fee on palm oil, crude palm oil and/or its derivative products. Regulation of minister decided the out-fee numbers.

The second, it derived from export levy on palm oil, crude palm oil and/or its derivative products, and the numbers were regulated by the regulation of minister.

Palm oil profit sharing would be about 20% for palm oil producer province, 60% for regency/city that produces palm oil, and 20% for regency/city that in border with regency/city that produces palm oil.

Ruksamin said palm oil profit sharing should be calculated based on what the allocation which meant, 90% would be from the percentage of profit sharing and the regions as producers, and 10% would be from the performance of the regencies.

The 10% profit sharing should be used to performance in the regency to get poverty alleviation, develop sustainable palm oil plantations and others.

“Palm oil profit sharing should be used to fund, such as, to develop and maintain ways, and/or other activities that related ministry instructed,” he said when inaugurating Dialog Multipihak Sawit Berkelanjutan in Konawe Utara that InfoSAWIT attended by the early of March 2024.

Ruksamin also mentioned, the regency would do to escalate palm oil profit sharing allocation, such as, expand palm oil plantations, escalate plantation productivity, increase the regency performance to minimize poverty, and other performance, do monitor and evaluation in profit sharing allocation. (T2)


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