Background

On 24 July 2015, the Minister of Public Work and Public Housing issued the Regulation No. 37/PRT/M/2015 on Utilization Permits of Water and/or Water Resources (“Regulation No. 37/2015”). Regulation No. 37/2015 issued with the aim to achieve the orderly implementation of the utilization permits of water resources for commercial activities.

Authority for Granting the Utilization Permits of Water Resources

There are 2 (two) types of utilization permits of water resources, namely:

1. the surface water on rivers, lakes, swamp and other surface water resources; and
2. in-land sea waters.

The goverment institutions that have the authority to grant the above mentioned permits are:

a. Minister of Public Works and Public Housing (“Minister”), as licensor to acquire and utilize water resources in the cross-provincial river area, cross-national river area, and national strategic river area.

b. Governor, as licensor to acquire and utilize water resources in the river area of cross-regency/city; or

c. Regent/mayor, as licensor to acquire and utilize water resources in the river area within a regency/city.

Application of Water Resources Utilization

The application to obtain the water- resources utilization permit for the surface of rivers, lakes, swamps, and other surface water resources and/ or in-land sea is submitted to the Minister of Public Work and Public Housing cq. Director General of Water Resources through the Licensing Service Unit with a copy to the management of water resources in the cross-national river area, cross-provincial river area, and national strategic river area.

The requirements for the utilization permits of water resources are granted by considering the technical recommendations from the management of water resources in the cross-national river area, cross-provincial river area, and national strategic river area, which containing technical considerations and suggestions. The results of the technical recommendations are then verified by the licensing verification team assigned by the Director General of Water Resources. The licensing verification team performs examination of:

1. technical recommendations and permit suggestions;
2. conformance between the permit application and technical recommendation; and
3. technical feasibility of the permit.

Granting of Utilization Permits

Within a period of 30 (thirty) days from the receipt of application from the applicant, the Minister of Public Work and Public Housing cq. Director General of Water Resources shall give an approval or a rejection towards the application. In case of the rejection, the Minister of Public Work and Public Housing cq. Director of General Water Resources shall inform the reason of rejection in writing to the applicant, and the applicant cannot resubmit the application by using the same data.

Extension of Utilization Permits

The utilization permits of water resources can be extended by submitting the application of extension permit in writing, at the latest 3 (three) months before the expiration of permit period. If within 3 (three) months before the expiration of permit period but the  application of extention has not been submitted, then the permit cannot be extended, but it possible to apply for a new permit. Within 30 (thirty) days from the receipt of application, the Minister of Public Works and Public Housing cq. Director General of Water Resources shall give the approval or rejection towards the application.

Revocation of Utilization Permits

The utilization permits of water resources can be revoked if :

1. The permit holder does not carry out the obligations contained in the utilization permits of water resources;
2. The permit holder misuses the utilization permits of water resources; or
3. The validity period of the utilization permits of water resources expired.

Prohibition

The holder of utilization permit of water resources is prohibited to lease and/or assigns part or all of the utilization permits of water resources to other parties.