Share of Revenue for Regions of Origin from Taxes

Special Allocation Fund (SAF) is one of the regional revenue sources from the allocation of the national budget (APBN). In the context of palm oil, SAF originates from the Land and Building Tax (PBB) on palm oil land. The allocation is 16.2 percent for the Provincial Government, 64.8 percent for the City/Regency Government, 10 percent for the Central Government, and the remaining 9 percent for collection costs.

Furthermore, there is also the Land and Building Acquisition Tax (BPHTB) as a regional tax. All BPHTB revenue collected by the Central Government is essentially transferred to the regions through a revenue-sharing scheme. The distribution proportion is: 16 percent for the Provincial Government, 64 percent for the City/Regency Government, and 20 percent for the Central Government – distributed equally to all regions.

In addition, there is also Income Tax (PPh), with 60 percent allocated to the Provincial Government and 40 percent to the Regency/City Government.

Unfortunately, SAF from palm oil plantations is not included. SAF derived from natural resource revenue only comes from the forestry, general mining, fisheries, oil mining, and geothermal mining sectors. This certainly affects the income of regions that depend on palm oil.