Apkasi pushes production-based DBH for resource-producing regions
The association also wants VAT on strategic commodities collected in producing regions to strengthen local finances.
Asosiasi Pemerintah Kabupaten Seluruh Indonesia (Apkasi) proposed changing the formula for the natural resources sector Dana Bagi Hasil to one based on production contribution so the fiscal capacity of resource-producing regions can strengthen. The proposal was delivered at a working meeting and a RDPU of Commission II of the House of Representatives at the Parliamentary Complex in Jakarta on Thursday (30/7), during talks on strengthening central and regional fiscal relations.
Apkasi Chairman Bursah Zarnubi said producing regions have long borne the costs of environmental damage, infrastructure pressure and the need to restore production areas without receiving benefits that match the economic output. Apkasi also asked for a special allocation from fresh fruit bunch production from palm oil as well as mining commodities such as coal, oil and gas to compensate for infrastructure development. In addition, Apkasi Executive Chairman Dadang Supriatna stressed that certainty in the disbursement of DBH is important so public services are not disrupted when transfers to regions decline.