Ministry of Finance Revises the Use of Profit-Sharing Funds from Forestry Reforestation

The Ministry of Finance is currently preparing a Draft Regulation of the Minister of Finance (“RPMK”) on the Use of Profit-Sharing Funds from Forestry Natural Resources – Reforestation Funds (“DBH DR”). This regulation is being formulated in response to changes in authority in the forestry sector following the enactment of Law No. 23 of 2014 on Regional Government, as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “Law 23/2014”), which transferred forestry authority from regencies/cities to provincial governments.

“It is still in the process of harmonization and will simultaneously replace Minister of Finance Regulation No. 55 of 2024 on the Use of DBH DR (“Permenkeu 55/2024”),” said Agung Widiadi, Director of Information Systems and Implementation of Transfer at the Directorate General of Fiscal Balance (DJPK) of the Ministry of Finance, to Hukumonline.

The main provisions of the RPMK include details of activities that may be funded from DBH DR and remaining DBH DR at both the provincial and regency/city levels, arrangements regarding the proportion of strategic and supporting activities, and the optimization of fund utilization. This also includes an extension of the period for the utilization of remaining DBH DR at the regency/city level.