How Are Water Source Permits Administered Under PERMENPUPR 2/2024?
1.0 Regulatory Foundation: Water Resource Permit Framework
Indonesia's water resource management framework underwent significant regulatory reform with the enactment of PERMENPUPR 2/2024 on February 7, 2024, replacing the previous 2016 regulation. This ministerial regulation establishes comprehensive procedures for business licensing and approval of water resource utilization across the archipelago.
The regulation distinguishes between two primary authorization types: Izin Pengusahaan Sumber Daya Air (Water Resource Business Permit) for commercial activities and Persetujuan Penggunaan Sumber Daya Air (Water Resource Usage Approval) for non-commercial activities. This bifurcation reflects Indonesia's policy of ensuring commercial water extraction operates under stricter regulatory oversight while facilitating legitimate non-commercial water needs.
According to Pasal 1 of PERMENPUPR 2/2024, the regulation defines critical terms underlying the water permit framework:
Pasal 1
Dalam Peraturan Menteri ini yang dimaksud dengan:
1. Sumber Daya Air adalah air, sumber air, dan daya air yang terkandung di dalamnya.
2. Air adalah semua Air yang terdapat pada, di atas ataupun di bawah permukaan tanah, termasuk dalam pengertian ini air permukaan, air tanah, air hujan, dan air laut yang berada di darat.
8. Penggunaan Sumber Daya Air adalah upaya pemanfaatan Sumber Daya Air untuk memenuhi kebutuhan usaha dan bukan usaha.
9. Perizinan Berusaha Penggunaan Sumber Daya Air yang selanjutnya disebut Izin Pengusahaan Sumber Daya Air adalah legalitas yang diberikan kepada pelaku usaha untuk memperoleh dan/atau mengambil Sumber Daya Air Permukaan untuk melakukan kegiatan usaha.
10. Persetujuan Penggunaan Sumber Daya Air adalah persetujuan untuk memperoleh dan/atau mengambil Sumber Daya Air Permukaan untuk melakukan kegiatan bukan usaha atau untuk melakukan pemanfaatan irigasi.
These foundational definitions establish that water resources encompass not only the physical water itself but also water sources and the inherent power within them. The regulation covers all water occurring on, above, or below the land surface, including surface water, groundwater, rainwater, and seawater located on land.
Matrix 1.1: Key Definitions Under PERMENPUPR 2/2024
2.0 Permitting Authority Structure: Institutional Framework
PERMENPUPR 2/2024 establishes a centralized permitting authority structure under the Ministry of Public Works and Housing. Pasal 5 delineates the ministerial authority chain:
Pasal 5
(1) Menteri menetapkan Izin Pengusahaan Sumber Daya Air dan Persetujuan Penggunaan Sumber Daya Air sesuai dengan kewenangannya.
(2) Menteri melalui Direktur Jenderal menetapkan Izin Pengusahaan Sumber Daya Air dan Persetujuan Penggunaan Sumber Daya Air sebagaimana dimaksud pada ayat (1).
(3) Dalam hal Izin Pengusahaan Sumber Daya Air dilakukan melalui aplikasi sistem online single submission, Izin Pengusahaan Sumber Daya Air ditetapkan oleh Lembaga Pengelola dan Penyelenggara Online Single Submission atas nama Menteri.
The Minister establishes water resource business permits and usage approvals in accordance with ministerial authority. In practice, the Minister exercises this authority through the Director General of Water Resources. However, when business permits are processed through the Online Single Submission (OSS) system, the OSS Management and Implementation Agency establishes the permits on behalf of the Minister.
This three-tier authority structure reflects Indonesia's broader regulatory reform agenda to streamline business licensing through digital platforms while maintaining ministerial oversight. The OSS integration represents a significant departure from traditional manual processing, positioning water resource permits within the national integrated licensing framework established under the Job Creation Law (UU Cipta Kerja).
The regulation also defines the institutional structure supporting permit administration. According to Pasal 1(15), a Tim Verifikasi (Verification Team) comprises a working group responsible for examining permit or approval application files and preparing decisions. This team consists of legal unit personnel, licensing unit staff, and related technical units as required.
Matrix 2.1: Permitting Authority Hierarchy Under PERMENPUPR 2/2024
3.0 Scope of Commercial Water Resource Activities: Permit Coverage
PERMENPUPR 2/2024 provides explicit categorization of commercial water resource activities requiring business permits. Pasal 6 and Pasal 7 establish the spatial and sectoral scope:
Pasal 6
(1) Pengusahaan Sumber Daya Air dilakukan pada:
a. titik atau lokasi tertentu pada Sumber Air;
b. ruas tertentu pada Sumber Air; atau
c. bagian tertentu dari Sumber Air.
(2) Pengusahaan Sumber Daya Air sebagaimana dimaksud pada ayat (1) merupakan kegiatan Penggunaan Sumber Daya Air untuk memenuhi kebutuhan usaha.
Water resource business activities are conducted at: (a) specific points or locations on water sources; (b) specific segments of water sources; or (c) specific parts of water sources. This spatial framework allows for multiple concurrent commercial utilization permits on the same water body, provided they occupy distinct spatial zones.
Pasal 7 enumerates fourteen categories of commercial water resource activities:
Pasal 7
Jenis kegiatan pengusahaan Sumber Daya Air meliputi pemanfaatan Sumber Daya Air untuk kebutuhan usaha:
a. pembangkit tenaga listrik berupa pembangkit listrik tenaga air, pembangkit listrik tenaga minihidro, pembangkit listrik tenaga mikrohidro, pembangkit listrik tenaga surya terapung, atau pembangkit tenaga listrik lainnya yang memanfaatkan Sumber Daya Air;
b. pemanfaatan ruang pada Sumber Air dan/atau sempadan Sumber Air untuk kegiatan konstruksi;
c. transportasi;
d. olahraga;
e. pariwisata;
f. perikanan;
g. industri;
h. makanan dan minuman;
i. perhotelan;
j. perkebunan;
k. Air Minum;
l. Air Minum dalam kemasan;
m. pertambangan; atau
n. kegiatan usaha lainnya.
The inclusion of "kegiatan usaha lainnya" (other business activities) provides regulatory flexibility for emerging water-dependent commercial activities not explicitly enumerated.
Matrix 3.1: Commercial Water Resource Activities Requiring Permits
Matrix 3.2: Eligible Permit Recipients
4.0 Application Procedures and Technical Requirements: Permit Processing
PERMENPUPR 2/2024 establishes a dual-track application system prioritizing online submission while maintaining alternative pathways. Pasal 12 mandates digital-first processing:
Pasal 12
(1) Tata cara pengajuan Izin Pengusahaan Sumber Daya Air dilakukan melalui aplikasi sistem online single submission.
(2) Dalam hal aplikasi sistem online single submission sebagaimana dimaksud pada ayat (1) belum dapat diterapkan, permohonan dan penetapan Izin Pengusahaan Sumber Daya Air diajukan melalui aplikasi sistem informasi perizinan Sumber Daya Air.
(3) Permohonan Izin Pengusahaan Sumber Daya Air diajukan oleh pemohon kepada Menteri melalui Direktur Jenderal.
(4) Permohonan Izin Pengusahaan Sumber Daya Air sebagaimana dimaksud pada ayat (3) hanya dapat diajukan untuk 1 (satu) nama Sumber Air.
The primary application channel is the Online Single Submission (OSS) system. However, if OSS cannot be implemented, applications may be submitted through the Water Resource Licensing Information System (Sistem Informasi Perizinan Sumber Daya Air). Applications are submitted to the Minister through the Director General of Water Resources. Critically, each application covers only one named water source, preventing applicants from bundling multiple water sources in a single permit request.
Pasal 11 establishes the substantive consideration criteria for permit issuance:
Pasal 11
Izin Pengusahaan Sumber Daya Air sebagaimana dimaksud dalam Pasal 10 ayat (1) ditetapkan dengan mempertimbangkan ketersediaan Air dan/atau pemanfaatan ruang pada Sumber Air serta pemeliharaan Sumber Air.
Business permits are established considering water availability, spatial utilization on water sources, and water source maintenance. This triple consideration framework requires permit authorities to assess hydrological capacity, existing spatial allocations, and the applicant's capacity to maintain the water source during commercial exploitation.
For floating solar power projects specifically, PERMENPUPR 2/2024 imposes heightened technical assessment requirements. Pasal 8 mandates comprehensive technical studies:
Pasal 8
(1) Pemanfaatan ruang pada Sumber Air untuk pembangkit listrik tenaga surya terapung sebagaimana dimaksud dalam Pasal 7 huruf a harus berdasarkan hasil kajian teknis yang dilakukan oleh pemohon.
(2) Kajian teknis sebagaimana dimaksud pada ayat (1) paling sedikit memuat kajian mengenai pengaruh pembangkit listrik tenaga surya terapung terhadap:
a. keberlanjutan fungsi Sumber Air;
b. penyelenggaraan operasi dan pemeliharaan Sumber Air; dan
c. keberlanjutan lingkungan Sumber Air berupa daya dukung lingkungan, kualitas Air, kondisi sosial, ekonomi, dan budaya.
Floating solar power projects require applicant-prepared technical studies assessing project impacts on water source functionality, operations and maintenance, and environmental sustainability (including environmental carrying capacity, water quality, and socio-economic-cultural conditions).
Matrix 4.1: Application Processing Framework
Matrix 4.2: Floating Solar Power Technical Assessment Requirements
5.0 Forward-Looking Analysis: Regulatory Evolution and Stakeholder Impacts
PERMENPUPR 2/2024 represents Indonesia's evolving approach to balancing economic development with water resource sustainability. The regulation's integration with the Online Single Submission system reflects the government's broader digitalization agenda under the Job Creation Law framework. This digital integration aims to reduce bureaucratic processing times and enhance transparency in permit administration.
The regulation's explicit inclusion of floating solar power generation as a permitted commercial activity signals Indonesia's recognition of renewable energy infrastructure on water bodies. The heightened technical assessment requirements for floating solar projects indicate regulatory caution regarding this emerging technology's environmental impacts. Applicants pursuing floating solar permits should anticipate extended processing timelines due to mandatory technical studies and environmental agency approvals.
Commercial entities across Indonesia's diverse water-dependent sectors face varying compliance burdens under PERMENPUPR 2/2024. Large-scale industrial users, hydroelectric developers, and bottled water producers will experience the most significant regulatory engagement, given the substantial water extraction volumes involved. In contrast, smaller-scale tourism or sports activities on water bodies may encounter streamlined processing, though they remain subject to spatial utilization assessments.
The regulation's emphasis on water availability, spatial utilization, and maintenance considerations creates a substantive merit-based permitting framework. This approach diverges from purely administrative compliance models, requiring permit authorities to exercise technical judgment regarding sustainable water allocation. This discretionary element introduces potential processing variability across different river basins and regions.
Provincial and district governments are notably absent from the permitting authority structure, with all decision-making centralized at the ministerial level. This centralization may create jurisdictional tension in regions where local governments have historically managed water resources. However, it ensures uniform national standards for commercial water resource exploitation.
Looking forward, stakeholders should monitor implementing regulations from the Director General regarding technical guidelines for specific activity types. The regulation's broad "other business activities" category (Pasal 7(n)) provides regulatory flexibility but also introduces uncertainty for novel water-dependent business models not fitting neatly into the enumerated categories.
Official Source
Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat Nomor 2 Tahun 2024 tentang Tata Cara Perizinan Berusaha Penggunaan Sumber Daya Air dan Persetujuan Penggunaan Sumber Daya Air
https://peraturan.bpk.go.id/Details/285393/permen-pupr-no-2-tahun-2024
Enacted: February 2, 2024 | Promulgated: February 7, 2024 | Status: Active
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Law Database
Access PERMENPUPR 2/2024 in the CRPG Law Database: PERMENPUPR 2/2024