Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme

Palm oil is considered a key commodity in supporting the Indonesian economy, generating both domestic revenue and foreign exchange. Such revenue needs to be distributed equally for the benefit of the government and society. This paper discusses the opportunities and challenges of the proposed revenu...

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Main Authors: Nurfatriani, F., Ramawati, Sari, G.K., Saputra, W., Komarudin, H.
Format: Journal Article
Language:Inglés
Published: MDPI 2022
Subjects:
Online Access:https://hdl.handle.net/10568/127829
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author Nurfatriani, F.
Ramawati
Sari, G.K.
Saputra, W.
Komarudin, H.
author_browse Komarudin, H.
Nurfatriani, F.
Ramawati
Saputra, W.
Sari, G.K.
author_facet Nurfatriani, F.
Ramawati
Sari, G.K.
Saputra, W.
Komarudin, H.
author_sort Nurfatriani, F.
collection Repository of Agricultural Research Outputs (CGSpace)
description Palm oil is considered a key commodity in supporting the Indonesian economy, generating both domestic revenue and foreign exchange. Such revenue needs to be distributed equally for the benefit of the government and society. This paper discusses the opportunities and challenges of the proposed revenue-sharing scheme, DBH Sawit, sourcing from palm oil, particularly between central and local governments. It examines how the proposed scheme can be implemented and what strategies can reward regions for moving toward environmental sustainability practices. Research methods used in this paper include a literature study, stakeholder interviews, the SWOT method and analytical hierarchy processes. Results indicate that DBH Sawit is one of several fiscal instruments that could potentially incentivize sustainability. It has both strengths and anticipated opportunities, such as increased CPO production and global demand for palm oil. It faces, however, serious weaknesses, such as unauthorized oil palm plantations and the absence of traceability systems. It is also threatened by unfair market and global policies. This paper recommends diverse strategies to increase palm oil productivity, accelerate sustainability certification and develop a tracing system. To accelerate the adoption of environmental sustainability, the paper advocates an ecological-based fiscal transfer system.
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spelling CGSpace1278292025-12-08T10:29:22Z Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme Nurfatriani, F. Ramawati Sari, G.K. Saputra, W. Komarudin, H. oil palms sustainability commodities Palm oil is considered a key commodity in supporting the Indonesian economy, generating both domestic revenue and foreign exchange. Such revenue needs to be distributed equally for the benefit of the government and society. This paper discusses the opportunities and challenges of the proposed revenue-sharing scheme, DBH Sawit, sourcing from palm oil, particularly between central and local governments. It examines how the proposed scheme can be implemented and what strategies can reward regions for moving toward environmental sustainability practices. Research methods used in this paper include a literature study, stakeholder interviews, the SWOT method and analytical hierarchy processes. Results indicate that DBH Sawit is one of several fiscal instruments that could potentially incentivize sustainability. It has both strengths and anticipated opportunities, such as increased CPO production and global demand for palm oil. It faces, however, serious weaknesses, such as unauthorized oil palm plantations and the absence of traceability systems. It is also threatened by unfair market and global policies. This paper recommends diverse strategies to increase palm oil productivity, accelerate sustainability certification and develop a tracing system. To accelerate the adoption of environmental sustainability, the paper advocates an ecological-based fiscal transfer system. 2022-09-01 2023-01-23T07:46:42Z 2023-01-23T07:46:42Z Journal Article https://hdl.handle.net/10568/127829 en Open Access MDPI Nurfatriani, F., Ramawati, Sari, G.K., Saputra, W. and Komarudin, H. 2022. Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia's Revenue-Sharing Scheme. Land 11(9), 1452. https://doi.org/10.3390/land11091452
spellingShingle oil palms
sustainability
commodities
Nurfatriani, F.
Ramawati
Sari, G.K.
Saputra, W.
Komarudin, H.
Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme
title Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme
title_full Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme
title_fullStr Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme
title_full_unstemmed Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme
title_short Oil Palm Economic Benefit Distribution to Regions for Environmental Sustainability: Indonesia’s Revenue-Sharing Scheme
title_sort oil palm economic benefit distribution to regions for environmental sustainability indonesia s revenue sharing scheme
topic oil palms
sustainability
commodities
url https://hdl.handle.net/10568/127829
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AT saputraw oilpalmeconomicbenefitdistributiontoregionsforenvironmentalsustainabilityindonesiasrevenuesharingscheme
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