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CRUDE PALM OIL (CPO) TAX SHOULD BE FLOWING TO REGIONS

dpd.go.id

Jakarta, dpd.go.id - Vice Chairwoman of the House of Regional Representative (DPD) of the Republic of Indonesia, Darmayanti Lubis stated that the Crude Palm Oil (CPO) Tax should be mostly returned to the area of origin in order to accelerate growth in regional development. This was stated by Darmayanti Lubis through a press release, dated August 5, 2019.

According to him, the Senator from North Sumatera, Indonesia is the world's largest producer of palm oil and a country that implements regional government with the largest autonomous system in the world. In carrying out the financial balance between the Central Government and the Regional Government, it still does not reflect the principles of balance and justice. This is indicated by the high dependency of regional finances on transfers and from the Central Government.

"One that is a mirror of the imbalance and fairness of finance between the center and the regions is related to Revenue Sharing from the natural resource sector, especially in this case the crude palm oil (CPO) tax does not flow to producing regions to increase regional income from the plantation sector, "he said.

he continued, the palm oil industry has always been a strategic issue, both at regional and global levels. The strategic issue was triggered by the profit and loss aspects. On the one hand, the oil palm industry is considered to have played an important role for the national economy including being able to improve people's welfare and reduce poverty, but on the other hand, it is seen as not having a significant impact especially on "producing regions" which can be a source of funding implementation of regional autonomy.

"As a result, the imbalance of revenue sharing funds to the regions, making the producing regions still rely on transfer funds from the center which in turn makes the regions dependent on transfer funds from the center, due to further weakening autonomy on the one hand, and strengthening central hegemony on the other side another, "said this Vice Chairwiman of DPD RI.

She added, the crude palm oil (CPO) tax did not flow to the producing regions because the inappropriate regulatory policies were reflected in the regulation in the Financial Balance Act between the Central Government and the Regional Governments which determined scientifically that DBH sourced from natural resources only from forestry receipts originating from Forest Utilization Business Permit (IIUPH), Forest Resource Provisions (PSDH) and reforestation funds generated from the relevant regions, mineral and coal mining receipts from land mining revenues and fee receipts exploration and exploitation fees (royalties) generated from the area of the region concerned, State Revenues from natural resources of petroleum mining produced from the regions of the regions concerned, State Revenues from natural resources of natural gas mining produced from the regions of the regions concerned, revenue from geothermal originating from the receipt of deposits from the Central Government, fixed contributions, and production fees generated from the relevant region. With the limitative provisions, the tax on crude palm oil (CPO) does not become a source of Revenue Sharing (DBH) from the natural resource sector, especially plantations for the regions.

"DPD RI as a State agency channeling regional aspirations, together with the regions, calls for a review of regulatory policies that restrict and inhibit regional autonomy, by encouraging changes to the Financial Balance Act between the Central Government and Regional Governments, and also towards Regional Government Law, in the context of protecting the environment, and so that natural resources in the region are not exploited disproportionately due to the central policy which sees the region only as part of the central authority, "she concluded. (mas)

 

05 Agustus 2019
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