Home Blog The Rise of Wastewater Audits for Hotels, Villas and Restaurants in Indonesia Business Licenses | Business Setup | Indonesia The Rise of Wastewater Audits for Hotels, Villas and Restaurants in Indonesia InCorp Editorial Team 16 June 2018 4 minutes reading time Table of Contents Wastewater Treatment Plant IPAL License Wastewater Law in Indonesia Factors of Non-Compliance in Wastewater Treatment Basic Requirements for IPAL Application Nowadays, besides China, people are talking about the archipelago nation of Indonesia with its astounding growth. This paradigm shift has offered many opportunities for the hotel industry. For the case in Nusa Dua, Bali and its surrounding areas, there is a turnover of US$400 million as a result of domestic and international events held in or around the areas, according to Gapura Bali. Despite the glamour and reasonable profit, hotels in Indonesia, especially in the popular tourist and start-up paradise Bali, are being urged to join the wastewater treatment movement with necessary licensing and facility. This is because one of the major concerns in hotel development is wastewater management. Its regulations on the local level are still inadequate. In Indonesia, the lack of a comprehensive wastewater facility and legislation jeopardises sustainable hotel and urban development. Wastewater Treatment Plant IPAL (Instalasi Pengolahan Air Limbah), also known as WWTP (wastewater treatment plant), is a wastewater treatment technology. It is designed to dispose of biological and chemicals pollutants that are unable to be broken down in nature—pathogenic microbes, organic compounds, and suspended solids—from water, so that the water can be utilised on other activities. IPAL License An IPAL license is a mandatory license for all hotels, villas and restaurant. An audit—which was not done previously—has to be conducted as well to safeguard the compliance, confirmed by Badung Environment and Hygiene Agency (DLHK). This IPAL license is very critical in addressing the environmental issues in Indonesia and definitely a positive step for the overall well-being and development of the country. Wastewater Law in Indonesia According to Asian Development Bank, currently, there are no specific and comprehensive wastewater management regulations in Indonesia. An example would be a law similar to the European Council Directive 91/271/EEC of 21 May 1991 regarding wastewater treatment in urban areas. The only legal information relating to wastewater that can be found is as follows: the decision of the Minister of the Environment No. 112/2003 regarding domestic wastewater quality standards; the regulation of the Minister of Environment No. 3/2010 in regards to the standard quality of industrial zone sewage; and the decision of the Minister of the Environment for effluent standards of domestic wastewater. In addition to those, there is a number of specific ministerial decisions and regulations available in Indonesia for certain industrial sectors. Some provincial or local laws are also established more demanding standards. Therefore, it is always advisable to engage a consultant to make clear of the ambiguous requirements for your IPAL license application. Factors of Non-Compliance in Wastewater Treatment Factors for hotel’s non-compliance of wastewater and pollutant management are in the following: Cost: some hotels are trying to minimise the commitment cost. The monthly tariff does serve as a major hurdle in the adoption of wastewater treatment. The lack of experienced and knowledgeable technicians and operators for IPAL. Poor or malfunction IPAL design that does not meet the load capacity of wastewater generated by hotels. This usually happens due to IPAL designed by inexperienced consultants engaged by the hotel or endorsed by the local authority. Stringent effluent standards occur in some provincial regions. Basic Requirements for IPAL Application Basic requirements for IPAL application in Indonesia for industries and enterprises include: Effluent standard Environmental Impact Assessment (EIA) and economic instrument IPAL licensing and permit Compliance supervision, law enforcement Technical guidelines and assistance Cekindo, a professional consulting agency with offices in Jakarta, Bali, and Semarang, has set itself the mission to provide professional IPAL license application and consulting services for hotels and other industries. Talk to us now, and we can help you in your sustainable business development in Indonesia. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions What is the Indonesian employment status in PMA company? In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment. What kind of license does a PMA company need to get? In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types: Business Identification Number (NIB) Low-risk businesses needing only an NIB Standard Certification Standard Certification is necessary for medium-low and medium-high-risk businesses Licenses/Permits High-risk businesses require licenses/permits Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM). What responsibilities does a PMA company have in terms of non-tax compliance? In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as: Annual financial report Investment realisation report Manpower and employee welfare report Expatriate utilisation report Company loan repot Foreign exchange and prudential principles report However, depending on the business activities and classification relevant authority may require additional reports from a PMA company. Does a PMA company in Indonesia have to meet certain criteria before it can distribute dividends? Dividends can be distributed from company net profits after allocating reserves, depending on a positive profit balance. Approval from the general meeting of shareholders is necessary. Interim dividends may be distributed if specific requirements are met. Get in touch with us. Lead Form Contact Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Licenses How East Java’s Industrial Estates Foster Business Success Read more What to Expect in 2025 for the Core Tax Administration System Read more The Importance of Being Contactable when Running A Virtual Business in Bali Read more