New Provisions on Licensing Procedures for Water-Resource Utilization

The Minister of Public Works and Public Housing (“Minister”) has issued Regulation No. 01/PRT/M/2016 on Procedures for Securing Licenses to Manage or Utilize Water-Resources (“2016 Regulation”).In essence, the 2016 Regulation sets out guidelines for both individuals and businesses looking to secure valid licenses prior to engaging in the management or utilization of a given water-resource, including: water, water sources (sumber air) and water-based power (daya air). [1] Prior to the issuance of the 2016 Regulation, these matters were regulated under Ministerial Regulation No. 50/PRT/M/2015 on Water-Resource Utilization Licenses (“2015 Regulation”)The 2016 Regulation is of relevance to any individual or entity intending to secure a license for the utilization of water resources.Classification of Water-Resource UtilizationThe 2016 Regulation stipulates two types of water-resource utilization, namely: utilization for business purposes (pengusahaan) and utilization for non-business purposes (penggunaan). [2] Details pertaining to the utilization of water-resources for both business and non-business purposes are outlined in the table below: