Palangka Raya – Bureau of Protocol and Public Communication. Central Kalimantan Province is one of the largest oil palm producing provinces in Indonesia and has a major contribution to national and regional development through the management of palm oil commodities.

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 Palm Oil Rejuvenation in Central Kalimantan until November 2019 reached Rp 120,475,000,000, while the proposed contribution of the palm oil 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 Palm Oil 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.

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, -.

As the time went by and the demands of regional development needs, it turns out that some of the Regional Governors whose regions as palm oil producing provinces feel the need to improve regulations and the distribution of funds for the production of oil palm for oil palm producing provinces. This was stated in a Joint Decree on the Proposal for Palm Oil Production Profit Sharing Fund for Palm Oil Producing Provinces which was signed by 21 Regional Heads of Provinces in Indonesia at the Coordination Meeting on Palm Oil Profit Sharing Fund for Palm Oil Producing Provinces at Grand Central Hotel Pekanbaru Riau, Saturday (Saturday 01/11/2020).

The 21 provinces that signed the Joint Decree on the Proposed Distribution of Palm Oil Production Profit Sharing Fund for the Palm Oil Producing Provinces consisted of 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, Papua and Central Kalimantan province that was attended by Vice Governor of Central Kalimantan Habib Ismail Bin Yahya.

The Coordination Meeting that was opened by  Governor of Riau Syamsuar resulted in 10 proposals that were set forth in a Joint Decree related to the Palm Oil Production Profit Sharing Fund for Palm Oil Producing Province, including:

First, it proposes 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 fund from individual PPH which is done on a limited basis through increasing the ratio of special PPH revenue sharing from oil palm plantations to the regions.

Second, it proposes 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 palm oil commodities but regulating all strategic plantation commodities as saved 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.

Third, it proposes 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.

Fourth, it proposes 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.

Fifth, it proposes 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.

Sixth, it proposes the addition of a Special Allocation Fund to improve infrastructures and the environment. (ran/pit/jmk/translated by feb)