A delay in the distribution of profit sharing fund (DBH) to the region is a matter of urgency to be resolved, because of disturbing the regional development planning system. DBH distribution issues and the Regional Tax Law and retribution become a discourse in the General Public Hearing Session (SDPU) Committee IV with the Director General of Fiscal Balance & Finance Department of Finance Republic of Indonesia. SDPU chaired by Chairman of DPD Committee IV Tonny Tesar, accompanied by Vice-Chairwoman of DPD Committee IV, Ella M. Giri Komala, took place in the Guidelines of State Policy room (GBHN), Nusantara V Building, Parliament Complex, Senayan, Jakarta, Tuesday (16/02).

In this SDPU, Committee IV requested an explanation from the Directorate General of Fiscal Balance concerning the taxation system in central and regional financial balance and inter-regional financial balance, the effectiveness of Law (UU) No.28 year 2009 on Regional Taxes and Regional Retribution, and delay matters of profit sharing distribution to the region.

Directorate General of Fiscal Balance, Dr. Mardiasmo, admitted that DBH distribution in some region were still experiencing delay as influenced of various factors in the mechanisms of computation and data of cooperation contractors contracts (KKKS) on oil lifting, lifting period and determination of producing region from related institutions. Besides expansion region may also lead to delay in DBH SDA. The government continued to seek acceleration of this DBH.

On this occasion, Directorate General of Fiscal Balance also explained the incentive funding policy for regional which was timely in determination of Regional Budget of Revenue and Expenditure (APBD) local regulations with Supreme Audit Agency (BPK) opinion as one of the criteria for reward. This policy was well received by the Committee IV DPD RI.

After the Directorate General described the fiscal decentralization policy of transfer of funds to the region, the Committee IV stated appreciation for increase in central funding which flows into the region or deconcentration fund and duty of assistance fund in the period 2004-2010, and its mechanism which more effective.

Committee IV DPD RI also appreciates taxing empowerment to the region through the Law (UU) No. 28 year 2009 about regional tax and regional retribution, and expects that region can do the implementation as good as possible. The aim is in order to achieve effectively stimulate the national economy, open the climate of employment creation and ultimately have implications for the welfare of the people in the region.

The explanations of Directorate General of Fiscal Balance get responses and questions from Committee IV senators in the matter of transparency of the calculation of General Allocation Fund (DAU), rules determination of General Allocation Fund (DAU) & Special Allocation Fund (DAK) distribution between rich and poor regions, and proposed indicator for the border regions to get deconcentration fund/assistance task.

At the end of General Public Hearing Session (SDPU), Committee IV gives recommendations to the Director General of Fiscal Balance to add region transfer fund considering effort to improve the quality of public service in the region requires a number of larger funds, includes improving the Human Development Index, reducing poverty and unemployment.

In addition Committee IV also requested the improvement of Law (UU) of regional Tax and regional retribution, which aimed to give greater authority to the region in the taxation and regional retribution, the formulation of the General Allocation Fund (DAU) and Special Allocation Fund (DAK) notice as possible the region which pattern inequality, such as geographical conditions and local needs.

Directorate General of Fiscal Balance also asked to pay close attention and to take care notice of various inputs from DPD RI, among others things; reduction of DAU in various regions, addition of DAU accompanying the regional Civil Servants (PNS), variable Islands & protected forest in the DAU formula, sharing profit of Income Tax, estate tax ratio, border regions are considered as indicator in the allocation of deconcentration fund and assistance task.

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