Palm Oil Revenue-Sharing Scheme by Purbaya Protested, Regions Receive Only 4 Percent

JAKARTA - The revenue-sharing scheme for Palm Oil Revenue-Sharing Funds (DBH Sawit) issued by Finance Minister Purbaya Yudha Sadewa has been deemed unfair. The scheme is regulated under Ministerial Regulation on Finance (PMK) Number 10 of 2026 concerning the Management of DBH for Palm Oil Plantations. The issue was highlighted in a discussion held by the Indonesian Economists Association (ISEI) Pekanbaru Branch, Coordinator for Riau Province. “The DBH Sawit revenue-sharing scheme, which sets a 4 percent portion for regions and 96 percent for the centre, is a clear form of fiscal injustice for producing regions, especially Riau,” said ISEI Riau Chairman Herman Boedoyo, as quoted from an official statement on Saturday (9/5/2026). As a palm oil producing region, Riau has the largest land area and is the main contributor to palm oil product exports. The 4 percent DBH Sawit began to be distributed in 2023. In that year, palm oil producing regions only received Rp3.396 trillion. The amount decreased in 2024 to Rp3 trillion; Rp1.249 trillion in 2025; and Rp756.63 billion in 2026. In that distribution, Riau only received DBH of Rp392.03 billion in 2023; Rp350.83 billion in 2024; Rp155.11 billion in 2025; and Rp96.11 billion in 2026. “The regulation still perpetuates fiscal imbalances that disadvantage producing regions,” said Herman. Herman urged the central government to significantly increase the portion of DBH sawit received by regional governments so that the local economy can continue. The 96 percent allocation to the central government and 4 percent to regions is deemed insufficient to finance addressing the impacts of the palm oil industry. “It is very inadequate to finance the recovery of environmental damage and the repair of regional road infrastructure that is destroyed due to palm oil logistics,” he said.