InfoSAWIT, PEKANBARU — The Riau Provincial Legislative Council (DPRD Riau) is proposing the introduction of a surface water tax for palm oil plantation companies starting in 2026, a move expected to significantly boost regional revenue.

Deputy Speaker of DPRD Riau, Budiman Lubis, said the policy could generate up to Rp4 trillion annually, helping to cover the province’s budget deficit.

“This sector alone has the potential to contribute Rp4 trillion. It could become a key solution to strengthen Riau’s locally generated revenue in 2026,” Budiman said, as reported by local media.

He emphasized that the tax would apply exclusively to plantation companies, not to independent smallholders. Discussions on the scheme are currently underway between the provincial government and the DPRD through a special committee focused on revenue optimization. (T2)