Following the enactment of the Regional Government Law that transfers authority of forestry management from the Districts/Cities to Provinces, since 2017 distribution of DBH DR was conducted by the central government to the producing provinces.
Provisions about DBH DR are set through Regulation of the Minister of Finance (PMK) as mandated by the State Budget Law. In 2022, the Ministry of Finance issued PMK No. 216/PMK.07/2021 regarding Use, Monitoring, and Evaluation of DBH DR, which is used as reference for producing provinces and districts/cities in using DBH DR.
Through this PMK, the government expands the use of DBH DR for provinces and districts/cities and opens the opportunity for Ecological Fiscal Transfer (EFT) schemes in its implementation. This opportunity needs to be optimized by the provincial and district/city governments, considering the amount of residual DBH DR in the regional treasuries reached IDR 4.17 trillion (Ministry of Finance, 2021).
To understand better the policy, PATTIRO has compiled a booklet regarding 2022 DBH DR policy and opportunities for its optimization for provinces and districts/cities. This booklet is compiled based on results of discussion with the Civil Society Coalition for Environmental Funding. It is hoped that this booklet could help local governments and communities in understanding DBH DR policy.