water license bali

Water License Bali: The Standard Licensing of Underground Water Use for Hotels and Restaurants

  • InCorp Editorial Team
  • 26 June 2019
  • 4 minute reading time

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.

Underground Water Management

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.

Water License in Bali for Hotels and Restaurants

securing water license in bali

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.

Obtaining Groundwater License in Bali: Requirements and Procedure

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:

  • Copy of Land Certificate;
  • Copy of the latest UN Repayment;
  • Drawing Plan and Drawing Plan for ABT Capturing Construction;
  • Recommendations from the Governor of Bali;
  • Photocopy of Company Establishment Deed for Legal Entity or photocopy of ID card for individuals;
  • Statement of no objection from the neighbor with the applicant’s location;
  • 1: 10,000 scale location map and / or sketches and 1: 50,000 scale photography maps that describe the location of underground water extraction plans;
  • Photocopy of valid business license;
  • For underground water extraction plans that have significant impacts, it is required to prepare an AMDAL, while those with no significant impact are required to prepare and carry out UKL / UPL in accordance with the stipulated licensing conditions as well as applicable laws and regulations;
  • A statement of capability of installing a water meter / water discharge measuring device;
  • Results of Analysis of Chemistry and Water Physics.


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.

securing water license bali with cekindo

Secure Your Underground Water License in Bali with Cekindo

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.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.