Many projects drill a well early for construction water, and housing estates often use a shared bore well. Since Permen ESDM 14/2024, a new well may only be drilled after its permit is issued. The good news is that the process is simpler now: fewer requirements, no permit fee, and issue within 14 working days if the file is complete.
Who needs which permit
| User | Permit | Applied through |
|---|---|---|
| Business (hotels, factories, commercial buildings, estates that sell water) | Groundwater business permit (SIPA) | OSS |
| Non-business above 100 m3 a month (households or groups) | Groundwater use approval (PPAT) | perizinan.esdm.go.id |
| Households below 100 m3 a month | No approval needed |
A shared well for an estate that does not sell water probably falls under PPAT if group use is above 100 m3 a month; confirm with the Geological Agency or the provincial energy office. Official sources word the threshold both as "at least" and "more than" 100 m3, so use the latest figure from the office.
Requirements and process
- Requirements for new applications were cut from 13 to 3 documents; the permit is free and issued within 14 working days if the file is complete and correct.
- Micro and small businesses submit a short study: well depth and diameter, planned use, pump type and capacity, pumping hours per day.
- Medium and large businesses submit a fuller hydrogeological study.
- Before drilling and the pumping test, the permit holder notifies the Geological Agency; well construction and the pumping test are supervised.
- After the permit: fit a water meter, report volumes regularly, and pay groundwater tax.
Putting it in the schedule
| Activity | Example duration | Note |
|---|---|---|
| Technical study | 1 to 2 weeks | Longer for large businesses |
| Permit processing | Up to 14 working days | If the file is complete |
| Drilling and pumping test | 1 to 2 weeks | The pumping test is often 24 to 48 hours |
| While waiting | Water from the utility or tankers | Put the cost in the RAP |
Groundwater tax and Jakarta rules
- Groundwater tax is a regional tax capped at 20% (UU 1/2022), based on the water acquisition value: base water price × volume. Each region sets the actual rate.
- In Jakarta, Pergub 93/2021 sets groundwater-free zones: buildings of 5,000 m2 or more, or 8 floors or more, in those zones have been banned from using groundwater since 1 August 2023 (dewatering excepted). The status of this rule and a newer 2026 rule is disputed, so check with the provincial government before planning a well.
Common mistakes
- Drilling the well before the permit is issued.
- Leaving permit time out of the schedule, so construction water has to be bought for longer.
- No meter, or volumes not reported.
- Planning a well for a large building in a Jakarta groundwater-free zone.
The full guide is in How to create a weekly construction schedule report in Google Sheets. It has a free template (Excel or Google Sheets) and a checker that reads your own workbook.
Ready to use the Komander agents on your projects?
When your workbook is complete, apply for a pilot: we help connect your project data to the Finance, Cost and Scheduler agents and review the first reports with you.
Send to melwani@komander.ai. Your workbook check result is included when there is one; the workbook itself is not sent.
Common questions
Does drilling a project well need a permit?
Yes for business use or above 100 m3 a month. Under Permen ESDM 14/2024, a new well may only be drilled after the SIPA or PPAT is issued.
How long does it take and what does it cost?
Up to 14 working days if the file is complete, with no permit fee. Groundwater tax is still paid by volume.
What is the difference between SIPA and PPAT?
SIPA is for groundwater used in a business, applied for through OSS. PPAT is for non-business use above 100 m3 a month, applied for through perizinan.esdm.go.id.
References
- Geological Agency (ESDM): groundwater permit FAQ (Indonesian): SIPA via OSS, PPAT, no drilling before the permit
- Ministry of Energy: easier groundwater permits (Indonesian): 3 requirements, 14 working days, free