Peraturan Menteri Energi dan Sumber Daya Mineral 5/2024 is an Indonesian ministerial regulation issued by the Minister of Energy and Mineral Resources setting the guideline for valuing groundwater for the purposes of the groundwater tax. Its full title is Pedoman Penetapan Nilai Perolehan Air Tanah (guidelines for determining the groundwater acquisition value). It was signed on 7 May 2024 and promulgated and in force on 21 May 2024.^[1][2]

The regulation was made under Pasal 68 of Undang-Undang 1/2022 on financial relations between the central government and the regions, which requires the energy minister to set the guideline.^[1:1] The acquisition value (Nilai Perolehan Air Tanah, NPA) it defines is the basis on which the groundwater tax is imposed, and provincial governors set the value in each province by governor regulation following the guideline.^[3][4] It revoked Peraturan Menteri Energi dan Sumber Daya Mineral 20/2017, the earlier guideline on the same subject.^[5]

The value is the product of a raw water price, built from the cost of recharge and monitoring wells, and a weighting coefficient that reflects the resource and the user, rising with the volume abstracted and with the commercial character of the use. The regulation forms part of groundwater regulation in Indonesia. CRPG's regulatory tracker reported on the regulation in November 2025.^[6]

¶ Components of the value

The groundwater acquisition value is the price of groundwater on which the groundwater tax is levied, equal to the raw water price (Harga Air Baku, HAB) multiplied by the groundwater weight (Bobot Air Tanah, BAT).^[7] The raw water price is the sum of a maintenance cost and a control cost. The maintenance cost is the cost of building and maintaining a recharge well, and the control cost the cost of building, operating and maintaining a groundwater monitoring well, each at local prices and each divided by the volume abstracted over the production life of the well.^[8]

The weight is a coefficient derived from six factors: the type of groundwater source, its location, the purpose of abstraction, the volume abstracted, the quality of the groundwater, and the level of environmental damage caused by abstraction. The first, second and fifth form a natural resource component, and the rest a use and management component.^[3:1] The natural resource component carries 60 per cent of the weight and the use and management component 40 per cent.^[9]

The natural resource component is scored on four ranked criteria whose weights are calculated exponentially from the rank.^[10] The annex ranks good-quality groundwater with an alternative water source highest, at a weight of 16, and poor-quality groundwater without an alternative source lowest, at 1.^[11]

¶ User groups and volume

The use and management component distinguishes five groups of users. Group 1 abstracts groundwater whose product is water. Groups 2, 3 and 4 abstract it for a product other than water, including production and operational support, in business activities of high, medium and low risk respectively, the risk level following the legislation on risk-based business licensing, which the regulation's preamble identifies as Peraturan Pemerintah 5/2021. Group 5 covers social, educational, health and government activities, direct use of geothermal heat, and drinking water supply by state, regional or village enterprises.^[12]

Each group's value rises progressively with the volume abstracted, and provinces may adjust the volume intervals to their groundwater potential.^[13] The annex sets five volume bands, from up to 50 cubic metres to more than 2,500 cubic metres, with values from 1 to 5.06 for group 5 and from 9 to 45.56 for group 1.^[11:1]

¶ Calculation and provincial implementation

The annex gives the formulas NPA = HAB × BAT, HAB = BPH + BPL, and BAT = 60% S + 40% P, and a worked simulation. In the simulation, a recharge well and a monitoring well serving a well that produces 100 cubic metres a day for five years give a raw water price of about Rp 2,203 per cubic metre, and a group 4 user with good-quality groundwater and an alternative source has an acquisition value rising from Rp 23,790 to Rp 34,530 per cubic metre across the volume bands.^[11:2]

Produced water and water removed by dewatering in upstream oil and gas are excluded from the general method; their value is to be set by a separate ministerial regulation after consideration by the finance minister.^[14] Governors must adopt a governor regulation on the acquisition value following the guideline, after verification by the minister through the head of the Geological Agency.^[4:1] Under the transitional provision, raw water used by oil and gas production-sharing contractors for daily needs or office operations is an object of the calculation, valued under the governor regulations as adjusted to the guideline.^[15]

Payment of the tax has a bearing on later groundwater licensing. Under Peraturan Menteri Energi dan Sumber Daya Mineral 4/2026, proof of groundwater tax payment may reduce the period of breach on which the fine for regularising an unlicensed well is calculated.^[16]

¶ See also

• Permen ESDM 31/2018
• Permen ESDM 14/2024
• Public finance and non-tax revenue in Indonesia

¶ External links

• Permen ESDM No. 5 Tahun 2024 (JDIH BPK)
• CRPG: Pricing Groundwater: Economic Instruments in PERMEN ESDM 5/2024 (crpg.id, 22 November 2025) (free sign-in required on crpg.id)

¶ References