Since 2017, the Revenue Sharing Fund for Natural Resources and Forestry Reforestation Funds (DBH DR) has been distributed to producing provinces as a consequence of implementing Law No. 23 of 2014 concerning Regional Government which transferred authority for forestry affairs from districts/cities to provinces. Although it has been transferred, there are still remaining DBH DR in the district/city treasury that can be used by the local government. In fact, the Ministry of Finance has issued Regulation of the Minister of Finance No.216/PMK.07/2021 concerning the Use, Monitoring, and Evaluation of Revenue Sharing Funds for Natural Resources and Forestry Reforestation Funds to accelerate optimization of the use of DBH DR.

Whereas there has been an expansion of the policy in PMK No.216/PMK.07/2021, until early September 2022, data from the Directorate General of Fiscal Balance of the Ministry of Finance (DJPK MoF) still shows a relatively high remaining DBH DR, namely IDR 4.29 trillion which has not yet been optimally used. These funds settle in the regional treasury with details of Rp. 1.74 trillion in the provincial government and Rp. 2.54 trillion in the district/city governments.

In order to support the acceleration and optimization of the use of DBH DR, PATTIRO, through the support of The Asia Foundation, is holding a Workshop on Optimizing the Use of DBH DR for Provinces and Regencies/Cities on 17-18 October 2022 face to face at the Sofyan Cut Meutia Hotel, Jakarta. This activity presents three ministries that are the leading sectors in implementing DBH DR, namely the Ministry of Finance (Kemenkeu), the Ministry of Environment and Forestry (KLHK), the Ministry of Home Affairs (Kemendagri). Also present were the Financial Audit Agency. The participants in this activity are regional governments throughout North Kalimantan Province (Inspectorate, Forestry Service, Bappelitbang, BPKAD, and KPH both provincial and district/city) and CSOs (The Asia Foundation, PATTIRO, and IBC).

The Asia Foundation’s SETAPAK 3 Program Director, Alam Surya Putra, in his remarks said that the absorption of DBH DR in the regions has extraordinary challenges. This can be seen from the DJPK data released in early September 2022, there are still 4.29 trillion in the regions. The absorption of DBH DR is still less significant both at the province and at the district/city level. Therefore, to optimize the use of DBH DR, it is necessary to have coordination between provincial and district/city governments and the central government (Ministry of Finance, KLHK, and Ministry of Home Affairs). “The regional government needs to convey advice to the central government in the process of preparing the RKP DBH DR which will be carried out at the end of October or early November 2022,” said Alam.

Ahmad Iqbal from Bappelitbang of North Kalimantan Province added that there are many challenges faced by North Kalimantan Province in optimizing the use of DBH DR. One of them is the difference of opinion between the central government and regional governments regarding the use of DBH DR. Apart from that, socialization regarding PMK No.216/PMK.07/2021 has not yet been conveyed to the site level, so that the Forest Management Unit (KPH), which is the spearhead at the site level, experiences a lack of understanding regarding this policy, especially regarding the rules for using DBH DR for strategic activities. others by 30%. Furthermore, Iqbal conveyed that the crucial issue that was a hot topic of discussion was the construction of infrastructure for KPH offices and not having an office to implement Folu Net Sink. “There is still no certainty from the central government about infrastructure development using DBH DR whether it is permitted or not,” said Iqbal.

Head of the KLHK Strategic Policy Center, Thomas Nifinluri, emphasized that regarding the construction of the KPH office, in PMK No.216/PMK.07/2021 there is no article that prohibits it and there is also no article that allows it. However, there are instruments in it that can be implemented through KPH strengthening programs or activities (KPH operations). Apart from that, in the management of DBH DR there is a principle of participation where DBH DR can be carried out by supporting tasks, namely DBH DR activities are carried out by KPH appointed by the Regent/Mayor.

Responding to the construction of the KPH office, Mariana Dyah Savitri said that the use of DBH DR for KPH facilities and infrastructure is welcome but must consider the portion of program needs and other activities. Apart from that, Mariana also explained the development of the remaining DBH DR from 2018-2022, where the figure is getting higher. The remaining DBH DR numbers continue to increase, indicating that regional governments are experiencing difficulties in implementing DBH DR activities, especially districts/cities whose authority has shifted to the provinces.

In her presentation, Mariana also said that there was a need for a breakthrough to optimize the use of DBH DR. This breakthrough will begin to be attempted in 2022 through other strategic activities contained in PMK No.216/PMK.07/2021. This PMK provides more flexible space in the use of DBH DR, for example providing BLT, strengthening the regional economy, and providing incentives. Apart from that, Mariana said that the Ministry of Finance together with the Ministry of Environment and Forestry and the Ministry of Home Affairs will invite regional governments to prepare the DBH DR Activity and Budgeting Plan (RKP) for the 2023 Fiscal Year (TA) which will be implemented in early November 2022.

Sumule Tumbo as Director of Fund Facilitation for Regional Balancing and Loans at the Ministry of Home Affairs reiterated what Mariana said regarding the construction of the KPH office. The construction of KPH offices using DBH DR is permitted as long as it can be accounted for and is a real need and does not override the budget needs of other programs and activities. PMK No.216/PMK.07/2021 has provided program options and activities for implementing DBH DR in order to optimize its use. “Earmark funds should be used and implemented because they are based on the legal basis, namely PMK No.216/PMK.07/2021,” said Sumule. Sumule also said that discussions on the 2023 DBH DR RKP with the Ministry of Home Affairs, KLHK and Ministry of Finance will be held no later than November 2022.

In this workshop, the provincial and district/city governments represented by KPH Malinau, KPH Bulungan, KPH Tana Tidung, KPH Nunukan, and KPH Tarakan presented the RKP DBH DR FY 2023 which had been prepared and would be presented at the discussion of the RKP DBH DR FY 2023 with three ministries.