How to Manage Underground Water Legally in Bali

Obtaining an underground water permit in Bali—officially known as SIPA (Surat Izin Pengusahaan Air Tanah) or Groundwater Utilization Permit—is essential for businesses, especially those in the hospitality, tourism, and agriculture sectors, that need to utilize underground water for operational purposes legally.

With growing pressure on natural resources and stricter local government enforcement, understanding the legal process and compliance requirements for underground water use in Bali is more important than ever.

Legal Basis for Underground Water Management

Underground water management in Bali is governed by a robust legal framework designed to ensure sustainable, equitable, and environmentally sound utilization of water resources. The key laws and regulations include:

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

This legal structure empowers central and regional governments to manage underground water resources effectively while prioritizing public welfare, environmental sustainability, and regulatory compliance.

The Importance of Underground Water Utilization

The purpose of managing underground water is to ensure its sustainable and environmentally responsible utilization. Underground water is a reliable alternative when insufficient or unavailable surface water sources are available. Key benefits include:

• Reliable supply during dry seasons or droughts
• Naturally filtered water quality requires less treatment
• Lower long-term operational costs once infrastructure is in place
• Decentralized access, ideal for remote or developing areas
• Essential support for water-intensive industries like hospitality, plantations, and manufacturing

Licensing Requirements for Underground Water Use in Bali

Businesses intending to use underground water in Bali must obtain permits through Indonesia’s OSS (Online Single Submission) system. There are two primary authorization types and a list of technical requirements.

Types of Permits

There are two main types of permits, commercial and non-commercial, depending on the nature of underground water use. Each follows a specific application process and is regulated by different authorities.

SIPA (Groundwater Utilization Permit)

• Grants legal rights to companies for underground water usage
• Required for commercial or business purposes
• Submitted via the OSS-RBA (Online Single Submission – Risk-Based Approach) platform
• Issued by the Minister of Energy and Mineral Resources (ESDM)

Underground Water Usage Approval

• Applies to non-commercial or personal use of underground water
• Filed through the ESDM’s Online Licensing Application system

Required Documentation

To apply for a SIPA or usage approval, applicants must prepare the following:

• Business Identification Number (NIB) and active OSS profile
• Location Permit and Spatial Suitability Approval (KKPR)
• Bore Plan detailing coordinates and planned daily volume (m³/day)
• Pump Specifications and relevant aquifer data
• Site Layout Plan, including water meter installation details
• Statement of Commitment to construct recharge wells and monitoring wells

SIPA in Bali for Hotels and Restaurants

In Bali, hotels and restaurants utilizing underground water, particularly through deep wells (typically over 100 meters), must obtain a SIPA. Key considerations include:

• Submission of detailed documentation (e.g., hydrogeological studies, water quality testing, discharge tests).
• Increasing enforcement by local governments, including penalties for noncompliant operations.
• Ongoing obligations for inspections and monitoring by regulatory authorities.

Updates on Underground Water Licensing for Companies

In August 2024, the government issued Government Regulation No. 30 of 2024, replacing GR 121/2015. This updated regulation introduces several improvements in underground water governance to address climate change, rising demand, and population growth. Key changes include:

• Water Usage Priority: Domestic needs come first, followed by agriculture, non-commercial public services, and commercial use.
• Tighter Supervision: Enhanced oversight, field inspections, and monitoring.
• Harsher Penalties: Noncompliance in underground water utilization may lead to permit freezing or revocation.

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Secure Your SIPA in Bali with InCorp

Navigating permits for underground water access in Bali can be complex, but you don’t have to go through it alone. InCorp Indonesia (an Ascentium Company) offers a comprehensive solution to assist you in securing the required permits, so your operations run smoothly and stay compliant. Here’s how we can help:

• Registering your OSS profile and securing your NIB
• Assisting with location permits and KKPR approvals
• Coordinating with authorities to ensure full technical compliance

Fill out the form below or visit our office in Bali. We’re also available in Jakarta, Semarang, Surabaya, and Batam to support your licensing needs—wherever your business operates.

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