State Revenue on Palm Oil and Its Contribution to Regional Development

ngopini -
April 2021


The Law on Fiscal Balance between the Central Government and Regional Governments Number 33 of 2004 gives greater authority to local governments, especially in the management of natural resources in their regions. However, the principle of decentralization of governance in the natural resource sector has not been fully implemented, for example, the results of state revenue on several plantation commodities produced by the regions are mostly transferred to the central government.

With an area of ​​oil palm plantations in Indonesia reaching 16.3 million hectares (Ministry of Agriculture, 2019), palm oil production has reached 52 million tons (Central Bureau of Statistics, 2020). The government collects state revenue in the form of tax revenue and non-tax state revenue (PNBP) in the oil palm plantation sector, but only a small portion is transferred to the regions.

This revenue should be returned by the central government to regional governments in the form of Revenue Sharing Funds (DBH), as is the customary fiscal decentralization system in the natural resources sector, forestry, mining and fisheries. This means that in principle decentralization has not yet been implemented, because the money follow function principle is not functioning. The amount of authority delegated should be accompanied by a budget in accordance with the amount of authority (Brodjonegoro & Simanjuntak, 2005; Fadliya & McLeod, 2010).

Then how does the state revenue system in the palm oil sector actually work and has it made the right contribution to the development of the area for managing oil palm plantations? To answer this question, Auriga Nusantara held an online discussion on Ngopini Sawit # 7: “State Revenue on Palm Oil and Its Contribution to Regional Development”.

Resource persons and presentation themes

Time and Location

Day/Date: Monday, April 26, 2021

Time: 15.00 - 17.00 WIB

Location: Youtube Auriga


This activity will invite participants to represent palm oil parties, ministries/state agencies, companies/associations, civil society, academics, the media and oil palm planters.

Dana bagi hasil sawit Ngopini Auriga Ngopini sawit Penerimaan sawit