Forestry Natural Resources Revenue Sharing Fund Reforestation Fund (DBH DR) is a regional right which came from the receipt of forestry natural resources reforestation fund. DBH DR was gave to regional government to full fill their needs in order to implemented decentralization.
Since 2017, DBH DR was given to regional government to producing provinces as a result of the implementation of Law No. 23 of 2014 concerning Regional Government which transferred authority for forestry affairs from districts/cities to provinces, districts/cities no longer receive DBH DR transfers from the center. However, the remaining DBH DR in districts/cities can still be managed until 2024.
The use of DBH DR is earmarked or its activities have been determined in accordance with laws and regulations. Policies related to DBH DR have experienced developments and dynamics in recent years. Initially, the regulation that became a reference for the use of DBH DR was Government Regulation (PP) No. 35 of 2022 concerning Reforestation Funds. In this PP, the use of DBH DR is limited to financing Forest and Land Rehabilitation (RHL). This policy provision limits the space for local government to move so that a lot of the remaining DBH DR settles in the regional treasury plus the issuance of a policy that transfers authority over forestry affairs from districts/cities to provinces.
In order to overcome this condition, since 2017, through the provisions stipulated in the APBN Law, the Government has expanded the use of DBH DR not only for RHL activities. As a technical rule, a Regulation of the Minister of Finance was issued regarding the use of DBH DR which became a reference for provincial and district/city governments in using DBH DR as well as the remaining DBH DR still in the regional treasury. The first PMK issued was PMK No.230/PMK.07/2017 concerning the Use, Monitoring, and Evaluation of DBH SDA Forestry Reforestation Funds. Every year, DBH DR arrangements are then regulated in the APBN Law with a derivative in the form of PMK.
In 2022, the government has issued a DBH DR policy that provides flexibility for local governments to utilize DBH DR and the remaining DBH DR through Regulation of the Minister of Finance no. 216/PMK.07/2021 concerning Use, Monitoring, and Evaluation of Forestry Natural Resources Revenue Sharing Funds for Reforestation. The issuance of this PMK is an effort to accelerate the optimization of the use of DBH DR. DBH DR can be used to finance strategic activities that have been determined by the government, such as providing direct cash assistance (BLT), strengthening the regional economy, and providing incentives to districts/cities and villages that have good performance in environmental and forestry management. Apart from that, the PMK also stipulates a limit for the use of the remaining DBH DR until 2024. This is an opportunity for local governments to accelerate optimization of the use of the remaining DBH DR.
In its implementation, there are challenges where the DBH DR in the Regency/City regional treasury is still very large. In addition, even though the use of DBH DR has been regulated in PMK which provides space for regional governments to use DBH DR according to regional needs, DBH DR cannot necessarily be absorbed by the regions. Based on data from the Directorate General of Fiscal Balance at the Ministry of Finance, the remaining definitive DBH DR in 2022 which is still in the regional treasury reaches IDR 4.29 trillion. This amount is in the provincial treasury of Rp. 1.74 trillion and Rp. 2.54 trillion for the regency.