InfoSAWIT, JAKARTA – The government has strengthened fiscal transfer policies through the issuance of Finance Ministry Regulation (PMK) No. 10 of 2026 on palm oil revenue sharing funds (DBH).

As reviewed by InfoSAWIT, Friday (27/3/2026), the policy aims to enhance fiscal equity and support development in palm oil-producing regions.

The regulation stipulates that DBH for palm oil will be sourced from state revenues, particularly export duties and levies on palm oil and its derivatives.

A key provision sets the minimum allocation of DBH at 4% of total state revenue from the palm oil sector.

This ensures that producing regions benefit directly from the industry, rather than merely serving as resource extraction areas.

The policy also allows flexibility in maintaining allocations through other state budget sources if necessary.

Funds will be directed toward community-impact programs, including infrastructure development, plantation data collection, land rehabilitation, and social protection for palm oil workers.

Notably, 10% of the allocation will be performance-based, linked to indicators such as poverty reduction and the implementation of sustainable palm oil action plans.

The distribution scheme allocates 20% to provinces, 60% to producing districts, and 20% to neighboring regions, supporting broader regional development. (T2)