In accordance with Law No. 32 Year 2004 concerning Regional Government, which was later revised to Government Regulation No 3 Year 2005, the tasks of underground water management have become the authority of the mayor or regent.
The purpose of underground water management is to realise the utilisation of water resources that are sustainable and environmentally developed. Underground water is an alternative solution to be opted for if other water sources are not possible to be used.
Any persons or legal entities conducting exploration and drilling activities that include excavation, plastering and extraction of underground water for various purposes are required to obtain groundwater license. Those activities can only be carried out after obtaining permission from the local government.
Businesses engaging in hospitality sector, i.e. restaurants and hotels, that utilise underground water for their business activities must obtain an Underground Water Permit (Surat Izin Pengambilan Air – SIPA).
What is meant by business activities that are related to the use of underground water are drilling activities that are carried out in order to get water at a depth of more than 100 meters, such as drilling wells.
The type of Underground Water Management Permit consists of a Business Permit for Drilling of Underground Water Companies, Drilling Permits, Permit for Drilling of Underground Water, Permit for Drainage of Underground Water, and Permit for Underground Water Exploration.
With regard to the permit, numerous restaurants and hotels in Indonesia, particularly in Bali, have been warned by the local government due to non compliance with the law.
The local government has now strictly carried out, supervised and controlled the extraction of underground water. In doing so, the government has implemented regular checking and collected necessary information directly to the places that are under investigation.
Each permit holder who violates this Regional Regulation can be subject to administrative sanctions in the form of business licenses revocation for underground water drilling companies, sealing of tools and points of water extraction, revocation of permits for extracting underground water, and closure of boreholes or building springs.
To obtain an underground water license, you are required to submit an application that is addressed to the Regent and/or Mayor through the BPPT Office in accordance with the type of business needed, namely Permit for Utilization / Exploitation of Groundwater (SIPAT), Groundwater Drilling Company Business License (SIPPAT) and Permit for Groundwater Research. The following documents are to be submitted with the application:
The timeframe for the local government to issue the permit is 20 working days, provided that you meet all the requirements mentioned above. You are also required to submit payment for the fees in accordance with applicable laws and regulations.
Cekindo’s team in Bali consists of professional business consultants and legal experts that can assist you in securing your underground water license in Bali for smooth business operations.
Get in touch with us by filling in the form below or visit us on-site in Badung. Our other offices are also available in Jakarta and Semarang.