ESDM Revises Regulation on Groundwater Licensing Derived from PP 28/2025

The Ministry of Energy and Mineral Resources (“ ESDM ”) is currently preparing Draft Regulation of the Minister of ESDM on Risk-Based Business Licensing (Perizinan Berusaha Berbasis Risiko- “ PBBR ”) in the ESDM sector. Under this regulation, several licensing provisions within the ESDM sector, including those related to groundwater, are being adjusted in accordance with the mandate of Regulation of the Government No. 28 of 2025 on the Organization of Risk-Based Business Licensing (“ PP 28/2025 ”).

“The provisions contained in this Permen on PBBR are also reflected in PP 28/2025,” said the Head of the Center for Groundwater and Environmental Geology, Agus Cahyono Adi.

The Draft Regulation of the Minister of ESDM will govern, among other things, changes to the Service Level Agreement (“ SLA ”) processing time from 14 to 30 days, and the validity period of the Groundwater Utilization License (Surat Izin Pengusahaan Air Tanah- “ SIPA ”) from five years to a tiered system of three, five, and seven years depending on the zone.

The regulation also sets out the requirements for new applications, renewals, and regularization of unauthorized constructions, such as groundwater wells/boreholes and/or groundwater use.

Provisions on verification are also regulated under this draft regulation of the minister. These include the procedures for evaluation and the granting or rejection of approval, the validity period of the license, as well as the obligations of license holders regarding the closure and transfer of groundwater use upon the expiration of the license.

According to Agus, the regulation of groundwater licensing under this draft regulation of the minister will affect the Regulation of the Minister of Energy and Mineral Resources No. 14 of 2024 on the Organization of Groundwater Utilization Licenses and Groundwater Use Approvals (“ PermenESDM 14/2024 ”). That regulation will be revised accordingly to ensure alignment with the new provisions.

“Subsequently, PermenESDM 14/2024 will be replaced by a new regulation,” he added.