Groundwater Licensing in Bali: A Guide for Hotels, Villas, and Restaurants

Many businesses in Bali, like hotels, restaurants, and villas, depend on air bawah tanah or groundwater for daily water needs. Surface water isn’t always enough, especially during the dry season. Groundwater offers a steady supply, but using it legally requires a groundwater license (ABT).  

This license shows that your business follows local rules and uses water responsibly. If your business needs a reliable water source, applying for a groundwater license is the right first step. 

Who Needs a Groundwater License in Bali? 

If your business in Bali plans to take water from underground, through a well or borehole, you need a groundwater license. This applies to: 

• Hotels and resorts 
• Restaurants and cafés 
• Villas, guesthouses, and homestays 
• Commercial buildings and offices 
• Agriculture or farming operations 

Even if you use air bawah tanah (groundwater) only part of the year, the license is still required. It helps ensure the water is used legally and does not harm the environment or other users nearby. Getting an ABT license shows your business is compliant and committed to sustainability.

READ MORE:

• Water License Bali: The Standard Licensing of Underground Water Use for Hotels and Restaurants
• Poor Water Supply and Sanitation in Indonesia: Business Potential
• The Rise of Wastewater Audits for Hotels, Villas, and Restaurants in Indonesia

What Regulations Apply to Groundwater Use in Bali? 

Using air bawah tanah (groundwater) for business in Bali comes with legal responsibilities. To protect the environment and manage water fairly, several key regulations must be followed: 

Permit Required for Business Use 

If your business uses more than 100 m³ of air bawah tanah (groundwater) per month, you must obtain a groundwater license through Indonesia’s Online Single Submission (OSS) system. This applies to hotels, restaurants, villas, and other commercial properties. 

Bali Governor Regulation No. 5/2016 

This local regulation outlines the types of permits needed for groundwater use, including: 

• Drilling permits 
• Usage permits 
• Commercial exploitation permits 

It also sets specific rules for how and where groundwater can be used based on zoning. 

Groundwater Zoning and Usage Limits 

The amount of air bawah tanah (groundwater) you can use depends on your location: 

• Up to 10 m³/day in critical or sensitive zones 
• Up to 25 m³/day in protected recharge areas 

These limits help prevent overuse and protect underground water sources. 

Technical and Environmental Requirements 

To apply for a license, your business must provide: 

• A hydrogeological survey 
• Well design and pumping test results 
• Water quality analysis 
• An environmental management document (SPPL, UKL-UPL, or AMDAL) 

Inspections and Penalties 

The government regularly inspects groundwater use. If you don’t follow the rules, you could face: 

• Fines 
• Suspension or revocation of your license 
• Business disruptions 

New Simplified Licensing System 

With Permen ESDM No. 14/2024, the OSS system simplifies groundwater licensing, reduces document redundancy, and aims to process applications within 14 days. 

The Differences Between ABT and SIPA 

It’s common to hear both ABT and SIPA mentioned when talking about groundwater in Bali. While they are closely related, they refer to two different things: 

ABT (Air Bawah Tanah) 

ABT means groundwater, water found beneath the earth’s surface. It refers to the resource itself that businesses tap into for daily use. Many companies in Bali use ABT for: 

• Cleaning and laundry 
• Cooking and washing 
• Irrigation and landscaping 
• Pool maintenance 

Accessing ABT requires the proper infrastructure, such as wells and pumps, and must be done responsibly to avoid depleting natural reserves. 

SIPA (Surat Izin Pengusahaan Air Tanah) 

SIPA is a groundwater utilization permit, which is the official permit you need to use ABT legally. It is a document issued by the government that: 

• Grants permission to extract groundwater 
• Ensures your water use is monitored and controlled 
• Protects other users and the environment 

While ABT refers to the water, SIPA is the license that allows you to use it. If your business uses groundwater, you are required to apply for this license through the proper channels. 

How to Apply for a Groundwater License in Bali 

Businesses that extract air bawah tanah (underground water) must apply for a groundwater license. The application process is handled through Indonesia’s OSS system, and it includes several technical and administrative steps that can be complex if not appropriately managed. Here’s an overview of what’s involved: 

• Collect the required business and technical documents 
• Register through the government’s online licensing system 
• Submit your groundwater application for review 
• Undergo a technical and environmental evaluation 
• Wait for approval and issuance of your license 

Each step requires accuracy and compliance with regulations; errors or delays can lead to rejections or penalties. That’s why many businesses choose expert support to handle the process efficiently. 

Secure Your Groundwater License in Bali with InCorp 

If your business in Bali uses air bawah tanah (groundwater), having a license isn’t optional; it’s required by law. Legal groundwater use protects your operations and the environment, whether you run a hotel, restaurant, villa, or resort. 

However, the licensing process can be slow and complex. That’s where InCorp Indonesia (an Ascentium Company) offers comprehensive business license services. We care for the entire process, so you don’t have to. 

• Save Time: We handle the paperwork, technical checks, and follow-ups so you don’t have to. 
• Avoid Mistakes: Our team ensures all requirements are appropriately met, reducing the risk of rejection. 
• Stay Compliant: We align your business with national and local groundwater regulations. 
• Local Expertise: We provide tailored guidance based on our deep knowledge of Bali’s zoning, environmental, and licensing rules. 
• End-to-End Support: We manage the process from document preparation to license issuance. 

Fill out the form below to simplify your groundwater licensing, so you can focus on running your business.