PALANGKA RAYA – BUREAU OF PROTOCOL AND PUBLIC COMMUNICATION. A total of 21 Provincial Leaders signed a Joint Decree on the Provision of Profit Sharing Fund for Oil Palm Producing Provinces. The signing was carried out at the Coordination Meeting of Oil palm Profit Sharing Fund for Oil Palm Producing Provinces at Grand Central Hotel Jalan Jenderal Sudirman Pekanbaru, Saturday (01/11/2020).

From Central Kalimantan, Vice Governor Habib Ismail Bin Yahya was present who also signed the joint decision. Whereas the Governors or Vice Governors from 20 other provinces, namely from Riau, Aceh, North Sumatra, West Sumatra, Jambi, South Sumatra, Bengkulu, Lampung, Bangka Belitung Islands, South Kalimantan, West Kalimantan, North Kalimantan, East Kalimantan, Southeast Sulawesi , Central Sulawesi, West Sulawesi, South Sulawesi, Gorontalo, West Papua and Papua.

At the Coordination Meeting that was opened by Riau Governor Syamsuar, a discussion on a draft joint decision was carried out before it was signed. The following 10 points were proposed in a joint decision related to oil palm profit sharing fund:

1. Proposing a revision of Law Number 33 of 2004 concerning Financial Balance between Central Government and Regional Governments by including the profit sharing fund of Export Taxes and Export Levies from plantation products as well as an increase in profit sharing from individual PPH which is done on a limited basis through an increase in the ratio of special PPH revenue sharing from oil palm plantations to the regions.
2. Proposing a revision of Law Number 17 Year 2006 concerning Customs as already applicable for tobacco taxes can be also applied to oil palm taxes.
3. Proposing a revision of Government Regulation Number: 24 of 2015 concerning Collecting Funding, Presidential Decree Number: 61 of 2015 Jo. Presidential Decree Number: 66 Year 2018 concerning Oil palm Plantation Funding Collection and Utilization along with their amendments and derivatives, not only regulating oil palm commodities but regulating all strategic plantation commodities as stated in Government Regulation Number: 24 of 2015 concerning the Collection of Plantation Funds that the use of collection oil palm plantation funds can be shared to producing regions.
4. Proposing a revision of Law Number 28 of 2009 concerning Regional Taxes and Fees related to the Transfer of Authority of PBB P3 from the Central Government to Regional Government and related to the transfer of several authorities regulated by Law Number 23 of 2014.
5. Proposing a revision of Law Number: 28 of 2019 concerning Regional Taxes and Regional Levies in connection with the Decision of the Constitutional Court Number 15 / PUU-XV / 2017 dated April 20, 2017 which instructs the legislators to make changes within a period of 3 years with respect to Law Number: 28/2009 especially with respect to taxation on heavy equipment because there is a close relationship between the collection of Motor Vehicle Tax and the collection of Motor Vehicle Fuel Tax.
6. Proposing a revision of the Ministry of Trade’s rules relating to the reduction / elimination of threshold limits related to the imposition of export levies and CPO export duties and their derivatives.
7. Proposing to curb plantation business licensing, reconcile the area and production data of CPO and its derivative production to obtain valid data as a basis for calculating profit sharing to the regions and for optimizing PBB P3 revenue.
8. Governors of respective provinces will coordinate with the Provincial House of Representatives, Indonesian House of Representatives, and the respective Council of Regional Representatives to make efforts on oil palm profit sharing fund nationally.
9. Reactivating the oil palm producing provinces communication forum.
10. Proposing the addition of a Special Allocation Fund to improve infrastructures and the environment.

On the other hand, Realization of Non-Tax profit Sharing fund from the Forestry Sector (IUHPH, PSDH and DR) for 2019 reached Rp. 25,122,695,400, and from Mining Sector (landrent, exploration and exploitation, oil and gas) reaching Rp. 153,049,571,974, -.

Based on the Permanent Statistics on Plantation of Central Kalimantan Province in 2018, the total area of ​​plantations in Central Kalimantan reached 2,005,711 hectares (Ha) covering oil palm plantation areas 1,520,937 Ha consisting of Smallholder Estate 166,926 Ha and Private Large Oil Palm Plantation 1,354,011 Ha . Production of Oil Palm Plantations reaches 5,158,524 tons, consisting of 277,701 tons of Smallholder Estate Plantation and 4,880,823 tons of Private Large Oil Palm Plantation production.

In addition, Central Kalimantan was also able to produce 8,806,401 tons of CPO / year that the Central Kalimantan province contributed to the National CPO Production of 25.3%. National CPO production based on Gapki data in August 2019 amounted to 34,700,000 tons / year.

However, oil palm plantations in Central Kalimantan also need rejuvenation. The realization fund for Oil palm Rejuvenation in Central Kalimantan until November 2019 reached Rp 120,475,000,000, while the proposed contribution of the oil palm fund to Central Kalimantan Provincial Government reached more than Rp 6.16 trillion which was used to fulfill the Government Affairs for Obligatory Basic Services and other obligations. Meanwhile, the fund coming from Oil palm Plantation Fund Management Board is used for the development of human resources, research and development, promotion, rejuvenation as well as facilities and infrastructures for oil palm plantations.

Earlier on Friday (10/01/2020), a Courtesy Dinner with all Governors of Oil palm Producing Provinces was held at Serindit GPU in Riau and attended by Provincial Secretary of Central Kalimantan Fahrizal Fitri (ran/pit/jmk/translated by feb).

BUREAU OF PROTOCOL AND PUBLIC COMMUNICATION

PROVINCIAL SECRETARIATE OF CENTRAL KALIMANTAN GOVERNMENT