Formulate a Fiscal Transfer System for Special Allocation Funds
Samarinda, 28 July 2020. Head of the Natural Resources and Environment Sub-Sector Rina Juliaty, S.Si, M.Si virtually took part in a public consultation on the preparation of the Ecology-Based Fiscal Transfer Policy Paper through Special Allocation Funds, Regional Incentive Funds and Village Funds, using the Zoom Meeting application in the Economic Sector room in order to formulating a Fiscal Transfer System for Special Allocation Funds at the East Kalimantan Province Bappeda office, Jl. Kusuma Bangsa Number 2 Samarinda.
In order to obtain input from wider policy stakeholders KEMITRAAN in collaboration with USAID BIJAK is reformulating the fiscal transfer system through Special Allocation Funds, Regional Incentive Funds and Village Funds by adding ecological criteria from the provincial level in Indonesia which is based on studies conducted previously, namely studies of funding alternatives for the management of conservation areas and protected forests, including taxes originating from the use of natural resources (non-tax revenues, forestry sector profit sharing funds), fiscal transfers (special allocation funds/DAK, village funds, and, DBH-DR, regional incentive funds/DID), green bonds, green sukuk, and off-treasury funds (via BLU).
The study found that fiscal transfers are the best option for funding the management of forest areas and conservation areas. Existing fiscal transfer mechanisms such as DAK, village funds and DID are the most feasible mechanisms. However, fiscal transfers through the DAK, village fund and DID mechanisms must be empowered to fund the management of forest areas and conservation areas, namely by adding ecological criteria to each of these schemes. This fiscal transfer by adding ecological criteria is known as ecological fiscal transfer (EFT), which allows the provision of funds to local governments that have large forests to conserve biodiversity, manage forests and improve the welfare of communities around forest areas.
Delivered by Rina Ecology-based physical transfers in Indonesia are very important because they can strengthen the capacity of local governments in preserving ecological functions in an effort to realize sustainable development and support the government's strategic programs, namely low carbon development, the impact of climate change and sustainable development.
Rina also said that to manage ecological functions well, appropriate sources of financing and incentives are needed for ecological conservation activities. Then the facts on the ground show that areas that are rich in ecological functions have high poverty rates, especially in areas on the edge of forest cover. This is what needs to be followed up. (bapp/hum/fat)
