Water Resource Business Permits Under PERMENPUPR 2/2024

Executive Summary

On January 1, 2024, Indonesia's Ministry of Public Works and Housing enacted PERMENPUPR 2/2024 on Procedures for Business Licensing for Water Resource Use and Water Resource Use Approval. The regulation establishes licensing procedures for commercial and non-commercial water resource utilization from surface water sources, implementing Government Regulation No. 121 of 2015 on Water Resource Development.

Background

PERMENPUPR 2/2024 implements Law No. 17 of 2019 on Water Resources, which requires permits for all commercial water uses. The regulation translates statutory requirements into operational procedures for businesses and government agencies. It revokes previous Ministerial Regulation No. 01/PRT/M/2016 and integrates water resource permitting into Indonesia's Online Single Submission (OSS) business licensing system.

Key Provisions

Permit Types

Pasal 1 Ayat 9-10: Perizinan Berusaha dan Persetujuan

"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. 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."

The regulation establishes two authorization types. Business Permits for Water Resource Use (Izin Pengusahaan Sumber Daya Air) authorize business entities to extract surface water for commercial activities. Water Resource Use Approvals (Persetujuan Penggunaan Sumber Daya Air) authorize extraction for non-business activities or irrigation use.

Surface Water Sources Covered

Pasal 3: Cakupan Sumber Air Permukaan

"Izin Pengusahaan Sumber Daya Air dan Persetujuan Penggunaan Sumber Daya Air sebagaimana dimaksud dalam Pasal 2 ayat (3) huruf a dan huruf b dilakukan pada Sumber Daya Air Permukaan yang meliputi mata Air, sungai, danau, waduk, rawa, dan sumber Air Permukaan lainnya."

The regulation applies to surface water resources including springs, rivers, lakes, reservoirs, wetlands, and other surface water sources.

Business Activity Categories

Pasal 7: Jenis Kegiatan Pengusahaan

"Jenis kegiatan pengusahaan Sumber Daya Air meliputi pemanfaatan Sumber Daya Air untuk kebutuhan usaha: a. pembangkit tenaga listrik... b. pemanfaatan ruang pada Sumber Air... 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 regulation covers thirteen water resource business activities: (a) electricity generation (hydroelectric, mini-hydro, micro-hydro, floating solar, and other water-utilizing power plants); (b) spatial utilization on water bodies and riparian zones for construction; (c) transportation; (d) sports; (e) tourism; (f) aquaculture; (g) industry; (h) food and beverage production; (i) hospitality; (j) plantations; (k) drinking water supply; (l) bottled drinking water; (m) mining; and (n) other business activities.

Allocation Priorities

Pasal 4: Urutan Prioritas Perizinan

"Izin Pengusahaan Sumber Daya Air dan Persetujuan Penggunaan Sumber Daya Air sebagaimana dimaksud dalam Pasal 2 ayat (3) huruf a dan huruf b diberikan berdasarkan urutan prioritas..."

The regulation establishes seven allocation priorities:

1. Basic daily needs for large water-consuming groups
2. Basic daily needs altering natural water source conditions
3. Smallholder agriculture outside existing irrigation systems and/or altering natural conditions
4. Water resource business for basic daily needs through drinking water supply systems
5. Non-business activities for public interest
6. Water resource business by state-owned, locally-owned, or village-owned enterprises
7. Water resource business by cooperatives, private entities, or individuals

Application Requirements

Pasal 13 Ayat 2-4: Persyaratan Permohonan Izin

"Permohonan Izin Pengusahaan Sumber Daya Air sebagaimana dimaksud pada ayat (1) dilengkapi dengan persyaratan: a. administrasi; dan b. teknis."

Permit applications require administrative and technical documentation. Applications must contain: applicant name, occupation, and address; business purpose and objectives; planned business location; required business duration; and extraction/discharge methods or facilities to be used.

Administrative requirements include: statement of responsibility for social problems arising from activities; absolute accountability statement for land use at activity site; and existing business licenses appropriate to intended water resource use activities.

Technical Assessments for Floating Solar

Pasal 8 Ayat 2-3: Kajian Teknis Pembangkit Listrik Tenaga Surya Terapung

"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..."

Technical assessments for floating solar power plants must address impacts on water source function sustainability, water source operation and maintenance, and environmental sustainability (including carrying capacity, water quality, and socioeconomic-cultural conditions).

For lake installations, assessments must additionally cover installation location plans relative to littoral zones and impacts of reduced sunlight penetration.

Verification Processes

Pasal 16 Ayat 2-4: Klarifikasi dan Rekomendasi Teknis

"Dalam hal kegiatan yang dimohonkan izinnya membutuhkan tambahan data teknis atau data lainnya, Tim Verifikasi dapat melakukan: a. permintaan Klarifikasi Teknis kepada BBWS/BWS; atau b. permintaan Rekomendasi Teknis kepada BBWS/BWS."

Verification Teams may request Technical Clarification or Technical Recommendations from River Basin Authorities (BBWS/BWS) when applications require additional technical data.

Technical Recommendations are required for activities involving: large flow use or extraction; water extraction from springs; infrastructure construction (weirs, dams, ponds); structures spanning across water bodies; and complex water resource utilization.

Approval Timelines

Pasal 20 Ayat 1-5: Jangka Waktu Penerbitan Izin

"Penetapan Izin Pengusahaan Sumber Daya Air atau penolakan permohonan Izin Pengusahaan Sumber Daya Air sebagaimana dimaksud dalam Pasal 18 dikeluarkan dalam jangka waktu paling lama 7 (tujuh) hari kerja terhitung sejak permohonan Izin Pengusahaan Sumber Daya Air beserta persyaratannya dinyatakan lengkap."

Permit issuance or rejection must occur within 7 working days from completeness declaration. This period is extended by 2 working days if technical clarification is required or 7 working days if technical recommendations are needed.

If permits remain unissued by applicable deadlines, applications are deemed approved with automatic issuance through online single submission or water resource permitting information systems.

Permit Duration

Pasal 21 Ayat 1-4: Masa Berlaku Izin

"Izin Pengusahaan Sumber Daya Air sebagaimana dimaksud dalam Pasal 18 huruf a diberikan untuk jangka waktu paling lama 10 (sepuluh) tahun."

Business permits are granted for maximum 10-year terms. Construction activities on water bodies not involving water consumption receive permits for structure service life duration. Large-infrastructure investments receive permits according to financial planning calculations. Standard 10-year permits are renewable.

Permit Revocation

Pasal 36 Ayat 1-3: Pencabutan Izin

"Pencabutan Izin Pengusahaan Sumber Daya Air dilakukan dalam hal: a. pemegang Izin Pengusahaan Sumber Daya Air tidak melaksanakan ketentuan dan kewajiban yang tercantum dalam Izin Pengusahaan Sumber Daya Air..."

Permit revocations occur when permit holders: fail to implement terms and obligations; misuse permits; request revocation; or submit false or invalid documentation.

For construction permits, revocation also occurs if construction is not commenced within 5 years without schedule modification or if completed structures remain non-operational for 1 year.

Implementation

PERMENPUPR 2/2024 is implemented by the Ministry of Public Works and Housing (Directorate General of Water Resources), river basin authorities (BBWS/BWS), provincial governments, and the Online Single Submission (OSS) system operator.

Entities requiring business permits include all commercial enterprises extracting or utilizing surface water resources for the thirteen activity categories specified in the regulation. Non-commercial users (subsistence farmers, public institutions, household domestic uses) typically qualify for approvals with simplified procedures.

Compliance obligations for permit holders include: operating within authorized extraction volumes and locations; maintaining extraction metering and reporting systems where required; implementing water conservation measures specified in permits; allowing government inspections; complying with environmental safeguards; participating in water allocation adjustments during drought periods; and paying applicable water resource taxes or fees.

Conclusion

PERMENPUPR 2/2024 establishes licensing procedures for commercial water resource use from surface water sources in Indonesia. The regulation differentiates business permits from use approvals, categorizes thirteen business activities, establishes seven-tier allocation priorities, and sets time-bound approval processes with automatic defaults. Permits are valid for 10 years and subject to revocation for non-compliance.

Official Source

This article discusses PERMENPUPR No. 2 Tahun 2024 on Procedures for Business Licensing for Water Resource Use and Water Resource Use Approval.

The official regulation text can be accessed at:

Primary Source:
PERMENPUPR No. 2 Tahun 2024 - BPK Regulation Portal

Alternative Sources:
- JDIH Sekretariat Kabinet
- JDIH Kementerian PUPR

Official Gazette: Berita Negara Republik Indonesia Tahun 2024

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