09 Feb 2016
NEW GOVERNMENT REGULATION ON EXPLOITATION OF WATER RESOURCES BUSINESS
The Government of Indonesia just issued Government Regulation No. 121 of 2015 regarding Exploitation of Water Resources for Business Purposes (“GR 121/2015”), as the implementing regulation of Law No. 11 of 1974 regarding Water Cultivation (“Law 11/1974”).
Law 11/1974 which was previously revoked by Law No. 7 of 2004 regarding Water Resources came back into effect when Law No. 7 of 2004 was revoked by the Indonesian Constitutional Court.
GR 121/2015 contains provisions which are meant to control and supervise the business exploitation of Surface Water (Air Permukaan) and Groundwater (Air Tanah) resources. It stipulates two types of licenses:
a. Business Permit for the Exploitation of Surface Water; and
b. Business Permit for the Exploitation of Groundwater.
The Business Permit for the Exploitation of Surface Water
This permit is issued by:
- The Ministry of Public Works and Housing, if the water is sourced from a trans-provincial or cross-country river or a river that has been determined as national strategic river;
- The Governor, if the water is sourced from a river located in more than one regency or city; or
- The Regent or the Mayor, if the water is sourced from a river that is located in one regency or city as relevant.
Surface Water Utilization Permit is valid for maximum 10 (ten) year depending on several factors as follows:
- Water availability;
- Water resources and related environmental conditions; and/or
The Business Permit for the Exploitation of Groundwater
This permit is issued by the Governor. The administrative and technical requirements are detailed in GR 121/2015. In addition, a technical recommendation is required from:
- The Ministry of Public Works and Housing, if the groundwater resource is located across a provincial or the country’s border, or on a national strategic zone; or
- The regional government agency in charge of groundwater matters, if the groundwater resource is located within a province which is not covered by point (a).
Underground Water Utilization Permit is valid for maximum validity period of 3 (three) years, depending on:
- The availability of the water;
- The environmental condition surrounding the water resource; and/or
- The business purpose of the water exploitation.
GR 121/2015 also imposes on the permit holder the obligation to submit monthly reports to the Governor on the water debit and to install a water meter on each production well. (by: Rendi Prahara Septiawedi)