In a significant move to bolster the palm oil industry and promote economic growth, Indonesia has taken a crucial step forward. On July 24, 2023, the President of the Republic of Indonesia signed Government Regulation No. 38 of 2023 (GR 38/2023), a landmark legislation that addresses fiscal imbalances and supports the sustainable development of oil palm plantations. This regulation introduces the Oil Palm Plantation Profit Sharing Fund (Dana Bagi Hasil or “DBH”), a critical financial mechanism that distributes a percentage of specific revenues within the state's budget to both producing and non-producing regions. With a strong emphasis on equity and sustainability, Indonesia aims to usher in a brighter future for its palm oil sector.

Dive into the details of this groundbreaking policy and its implications in our latest article.

Dentons HPRP’s lawyers, Maurice Maulana Situmorang (Partner), Dinda Triwijanarko (Senior Associate), and Carlos William Rettobjaan (Associate) have prepared a brief write up highlighting regulations concerning the industry which relates to the issue.

The full article can be downloaded here.

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