Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat 2/2024 (Peraturan Menteri Pekerjaan Umum dan Perumahan Rakyat Nomor 2 Tahun 2024 tentang Tata Cara Perizinan Berusaha Penggunaan Sumber Daya Air dan Persetujuan Penggunaan Sumber Daya Air) is an Indonesian ministerial regulation on the procedures for the two authorisations required to take and use surface water: the business licence for water resource use and the approval of water resource use. It was signed by the Minister of Public Works and Public Housing, M. Basuki Hadimuljono, on 2 February 2024 and promulgated on 7 February 2024, the day it took effect.^[1][2] It is one of the implementing instruments of water resources law in Indonesia, and cites Undang-Undang 17/2019 on water resources among its legal bases.^[3]

The regulation divides the use of surface water into two tracks. Commercial use requires an Izin Pengusahaan Sumber Daya Air (water resources business licence), issued through the online single submission system for business licensing; non-commercial use and irrigation use require a Persetujuan Penggunaan Sumber Daya Air (water resources use approval), issued through the water resources licensing information system.^[4][5][6] It sets out who may apply, what an application must contain, the timetables for decisions, the duration, extension, amendment and revocation of each authorisation, and the rights, obligations and prohibitions that bind holders.^[7]

It replaced Peraturan Menteri PUPR 01/PRT/M/2016 on the licensing of commercial and other use of water resources, and the annex of a 2021 regulation on risk-based business licensing standards that dealt with the business licence.^[8][2:1] CRPG's regulatory tracker published four analyses of the regulation between November 2025 and April 2026.^{[9][10][11][12]}

¶ Background

The considerations recall that the 2016 regulation had been made to implement provisions of Peraturan Pemerintah 121/2015 on the commercial use of water resources, and state that changes in the legislation on water resources and in the practice of water resources management required it to be revoked and replaced.^[3:1] The legal bases cited are Pasal 17 ayat (3) of the 1945 Constitution, Undang-Undang 39/2008 on state ministries, Undang-Undang 17/2019 on water resources, Peraturan Pemerintah 5/2021 on risk-based business licensing, and ministerial regulations on river territories, dams and the organisation of the ministry.^[3:2]

Peraturan Pemerintah 121/2015 was itself revoked later in 2024 by Peraturan Pemerintah 30/2024 on water resources management, whose transitional provisions keep existing regulations on water resources management in force so far as they do not conflict with it and have not been replaced.^[13]

¶ Scope and priorities

Pasal 1 defines the business licence as the legal authority given to a business actor to obtain or take surface water resources for business activities, and the approval as consent to obtain or take surface water for non-business activities or irrigation use.^[4:1] Both authorisations are issued on the basis of river territories (wilayah sungai) and concern only surface water, meaning springs, rivers, lakes, reservoirs, swamps and other surface water sources; groundwater, the subject of groundwater regulation, is outside the regulation.^[14] The minister issues both authorisations through the Director General of Water Resources, and where the business licence is processed through the online single submission system it is issued by the system's operating agency on the minister's behalf.^[15]

Pasal 4 fixes an order of priority for granting authorisations: basic daily needs of groups using large quantities of water; basic daily needs that alter the natural condition of a water source; smallholder farming outside existing irrigation systems; the supply of drinking water through a drinking water supply system; non-business activities in the public interest; commercial use by state-owned, regionally owned or village-owned enterprises; and, last, commercial use by cooperatives, private companies or individuals.^[16]

¶ Business licence

Commercial use may take place at a point, a stretch or a part of a water source, and covers hydropower and other water-based power generation including floating solar plants, the use of space in or along water sources for construction, transport, sport, tourism, fisheries, industry, food and beverages, hotels, plantations, drinking water, bottled drinking water, mining and other businesses.^[17] Floating solar plants require a technical study of their effect on the function, operation and maintenance of the water source and on its environment; for lakes the study must also address the littoral zone and reduced sunlight, and its environmental parts need the approval or recommendation of the environmental agency.^[18] Licences may be granted to state-owned, regionally owned and village-owned enterprises, cooperatives, private companies and individuals, with regard to the availability of water and the maintenance of the source.^[19]

An application covers a single water source and must carry administrative and technical requirements, including statements of responsibility for social problems and for the land used, the applicant's business licence, the quantity and schedule of abstraction and the design of the infrastructure. For drinking water produced for basic daily needs, the local regionally owned water utility must certify that the site lies outside its service area or that it cannot meet the demand; the requirement does not apply to state-owned or village-owned drinking water providers.^[20]

A verification team checks the application against the law and technical feasibility and may ask the river basin organisation (Balai Besar Wilayah Sungai or Balai Wilayah Sungai) for a technical clarification, due within two working days, or a technical recommendation, due within seven working days; a recommendation is needed for large abstractions, spring water, dams, weirs and other water infrastructure, structures across a water source and complex uses.^[21] The licence must be issued or refused within seven working days of a complete application, extended by two or seven working days where a clarification or recommendation is needed; an application not decided within the time limit is deemed approved and the licence issued automatically.^[22]

A licence lasts at most ten years, or for the service life of a construction that uses no water, or for a period matching the investment plan where large infrastructure is needed, and may be extended.^[23] Holders drawing on springs must support the river basin organisation in securing the spring.^[24] Extension must be sought at least one month before expiry and only if the activity is unchanged.^[25] A licence may be amended at the holder's request or by the minister where the conditions on which it was granted change, the environment of the source changes materially, government policy changes, or use over twelve consecutive months falls below 90 per cent of the quota; a change in the holder's name voids the licence unless an amendment is sought within a month.^[26] It is revoked for breach of its terms, misuse, false documents or at the holder's request, and where construction does not begin within five years; it lapses if a completed structure is not used for a year.^[27]

¶ Use approval

Non-business use covers basic daily needs, smallholder farming and other non-commercial activities, while irrigation use covers taking irrigation water and building, improving, operating, maintaining, rehabilitating and using irrigation networks.^[28] No approval is needed for an individual's basic daily needs that do not alter the natural condition of the source, or for smallholder farming within an existing irrigation system with a need of no more than two litres per second per household.^[28:1] An approval is needed for basic daily needs where the source is altered or the use exceeds the needs of 150 people from one abstraction point or 60 litres per person per day.^[29]

Approvals for basic daily needs are given through data collection by the river basin organisation, which records users and updates the data at least once a year; other approvals are applied for through the water resources licensing information system.^[30] The seven-working-day decision period, the extensions for clarifications and recommendations and the deemed approval apply as for the business licence.^[31] Approvals for basic needs last as long as the individual lives or the group continues to use the water, approvals for smallholder farming as long as they are needed, and other approvals and irrigation approvals up to ten years, extendable.^[32]

¶ Rights, obligations and supervision

Holders may take surface water and build infrastructure in accordance with their authorisation, which may be adjusted if the condition of the source or the availability of water changes.^[33] They must comply with its terms, pay the water resources management service fee and other financial obligations, protect the function of the source and its infrastructure, control pollution, repair environmental damage and give nearby communities access to water for their basic daily needs; holders who build on a water source have further duties, including guaranteeing the daily water supply of communities disrupted by construction. Holders of non-business approvals and some irrigation users are exempt from the service fee.^[34] Holders may not lease or transfer their authorisation, control a water source or close public access to it.^[35]

Supervision is carried out by the river basin organisations, which may involve the public through reports and complaints, and the minister must follow up their findings with warnings, sanctions or other measures.^[36] Authorisations using state property require separate approval for its use.^[37] Licences and permits issued before the regulation remain valid until they expire, and pending applications are processed under the new rules.^[38]

¶ Distinct instrument of the same number

A different regulation bears the same number and year: Peraturan Menteri Pekerjaan Umum 2/2024, signed on 13 December 2024 by the Minister of Public Works, which sets guidelines for forming coordination bodies for water resources management at the river territory level under Pasal 66 ayat (6) of Undang-Undang 17/2019.^[39]

¶ External links

• Permen PUPR No. 2 Tahun 2024 (JDIH BPK)
• CRPG: Business Licensing for Water Resource Use in Indonesia: PERMENPUPR 2/2024 (crpg.id, 21 April 2026) (free sign-in required on crpg.id)
• CRPG: How Are Water Source Permits Administered Under PERMENPUPR 2/2024? (crpg.id, 26 November 2025) (free sign-in required on crpg.id)
• CRPG: Two-Track Water Permits: Business Permits vs Usage Approvals (PERMENPUPR 2/2024) (crpg.id, 26 November 2025) (free sign-in required on crpg.id)
• CRPG: Water Resource Business Permits Under PERMENPUPR 2/2024 (crpg.id, 22 November 2025) (free sign-in required on crpg.id)

¶ References