Groundwater Utilization Permit in Bali: A Guide for Hotels and Restaurants

Many businesses in Bali, like hotels, restaurants, and villas, depend on air bawah tanah or groundwater for their 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 Utilization Permit (SIPA—Surat Izin Pengusahaan Air Tanah).  

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

Who Needs a SIPA in Bali? 

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

• Hotels and resorts
• Villas and beach clubs
• Restaurants, central kitchens, and F&B businesses
• Laundries and spas
• Bottled water production sites
• Other industries that require groundwater use

Even if you use air bawah tanah (groundwater) only part of the year, the permit is still required. It helps ensure the groundwater is used legally and does not harm the environment or other users nearby. Getting a SIPA 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:

• 1945 Constitution of the Republic of Indonesia 
• Law No. 17/2019 on Water Resources 
• Law No. 6 of 2023 on Job Creation
• GR No. 30/2024 on Water Resources Management
• Ministerial Regulation ESDM No. 14/2024

Permit Required for Business Use 

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

Application Requirements 

To apply for a license, your business must provide: 

• NIB & OSS profile
• Location permit and spatial suitability (KKPR)
• Bore plan, coordinates, daily volume (m³/day)
• Pump specifications and aquifer details
• Site layout and meter installation plan
• Commitment to build recharge and monitoring wells

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 Permit System 

With Permen ESDM No. 14/2024, the OSS system simplifies your permit, 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 groundwater for: 

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

Accessing groundwater 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 groundwater legally. It is a document issued by the government that: 

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

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

How to Apply for a SIPA in Bali 

Businesses that extract air bawah tanah (groundwater) must apply for a SIPA. 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 permit

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 SIPA in Bali with InCorp 

If your business in Bali uses air bawah tanah (groundwater), having a permit 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 permit rules. 
• End-to-End Support: We manage the process from document preparation to permit issuance. 

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

Frequently Asked Questions