How Does PERMENPUPR 2/2024 Reform Water Resource Licensing in Indonesia?
1.0 Regulatory Foundation
PERMENPUPR 2/2024 establishes procedures for business licensing in water resource utilization, aiming to balance economic activity with sustainable water management. Enacted in 2024, this regulation responds to growing demands for clear governance of Indonesia’s critical water resources.
Key Definitions (Pasal 1):
"Sumber Daya Air adalah air, sumber air, dan daya air yang terkandung di dalamnya."
Translation: "Water Resources are water, water sources, and the energy contained therein."
"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."
Translation: "Water Resource Business License is the legality granted to business actors to obtain and/or extract Surface Water Resources for business activities."
Matrix 1.1: Key Definitions
2.0 Core Framework
The regulation introduces a structured licensing process, emphasizing technical verification and public accountability.
License Amendment Process (Pasal 30-33):
"Dalam hal nama pemegang Izin Pengusahaan Sumber Daya Air berubah... Izin Pengusahaan Sumber Daya Air batal dengan sendirinya."
Translation: "If the name of the Business License holder changes... the license automatically expires."
Matrix 2.1: Amendment Process Overview
3.0 Implementation Requirements
Businesses must adhere to strict timelines and documentation standards. For example, technical recommendations (Rekomendasi Teknis) are mandatory for high-risk activities like dam construction (Pasal 32).
Matrix 3.1: Implementation Timeline
4.0 Enforcement & Sanctions
Supervision mechanisms (Pasal 80) emphasize compliance monitoring:
"Pengawasan... meliputi kesesuaian identitas pemegang izin, pelaksanaan ketentuan izin, dan dampak negatif."
Translation: "Supervision includes verifying licensee identity, compliance with license terms, and negative impacts."
Non-compliance triggers warnings, sanctions, or license revocation (Pasal 80(7)). Public reporting is integrated into oversight, with BBWS/BWS submitting findings to the Direktur Jenderal.
5.0 Implications & Outlook
Stakeholder Impact:
- Businesses: Clearer procedures reduce bureaucratic delays but increase compliance burdens.
- Public: Enhanced transparency through public participation in supervision (Pasal 80(5)).
- Government: Strengthened interagency coordination via Tim Verifikasi.
Key Compliance Takeaways:
1. Prioritize timely updates to avoid license expiration.
2. Engage BBWS/BWS early for high-risk projects.
3. Monitor community feedback to mitigate operational risks.
Official Source
Full regulation text available at https://peraturan.bpk.go.id/.
Citation: Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat Nomor 2 Tahun 2024 tentang Tata Cara Perizinan Berusaha Penggunaan Sumber Daya Air.
Law Database
Access PERMENPUPR 2/2024 in the CRPG Law Database: PERMENPUPR 2/2024
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