Background

Regulation of the Minister of Public Works and Public Housing No. 18/PRT/M/2015 on the Retribution of Exploitation and Maintenance of Buildings Irrigation (“Permen PUPR No. 18/2015“), was issued as a reference for the central government or local governments to calculate and to obtain the basis calculation of the levy rate of exploitation and maintenance of buildings irrigation.

Retribution of exploitation and maintenance of buildings irrigation charged to the users as the holder of the license to use water resources.

Permen PUPR No. 18/2015 defines the meaning of water resources. Water resources are water, water sources, and water power contained inside. Water is all the water contained in, above, or below the soil surface, including surface water, ground water, rain water, and sea water on land.

The water source is a container of water or natural and/or artificial contained on, above, or below the soil surface. Water power is the potential contained in the water and / or water sources which could benefit or harm to life and human livelihood and the environment.

Retribution of exploitation and maintenance of buildings irrigation are funds withdrawn in return from those who have benefited the use and enjoyment by the availability of water, the benefits of water resources, and/or benefit from irrigation buildings (“Cost Management Services“).

The Cost Management Services will be charged to the users who have benefits from water resources in accordance with the rational calculation and can be accounted for. The Cost Management Services are exempted for the users of water resources to meet their basic needs of daily as well as for folk agriculture.

The Cost Management Services is used to finance the management of water resources, which include (i) the cost of information systems; (ii) the cost of the planning; (iii) construction costs; (iv) operating costs, maintenance; and (v) the costs of monitoring, evaluation and community empowerment.

The Cost Management Services is charged, accepted and used by the central government or local government from the service users. The government can give assignment of water resources management to the Badan Usaha Milik Negara (“BUMN”)/Badan Usaha Milik Daerah (“BUMD”). BUMN/BUMD will charge, accept, and use the Cost Management Services from users according to their work areas.
Types of business activities are subject to Cost Management Services includes use of water resources for business activities are:
a. industry;
b. drinking water;
c. hydroelectric power plant; and
d. agriculture including plantation and fisheries.

Permen PUPR No. 18/2015 also attachs the procedures and the example of calculation of the Cost Management Services. The calculation procedures of Cost Management Services conducted through the following steps:
a. calculate the cost requirements for water resources management;
b. calculate the value of the economic benefits of the use of water from different groups of users;
c. calculate the value of the unit Cost Management Services to each water user groups by using the basic formula;
d. simulating the calculation of the level of acceptance of the Cost Management Services to the owners (stakeholders);
e. discusses the simulation results with stakeholders (stakeholders) by taking into account the impact of the Cost Management Services to the economic level of product users of water resources; and
f. propose the amount of the value of the unit Cost Management Services to the Minister of Public Works and Public Housing, governor or regent/mayor in accordance with the authority to set.
 The calculation stage of Cost Management Services was conducted by the evaluation teams rates set by the Minister of Public Works and Public Housing.

Askadarini Harahap