Izin Air Bawah Tanah (ABT): Important License for Business in Bali

Groundwater license, or Izin Air Bawah Tanah (ABT), is a vital resource for tourism and hospitality in Bali. The government requires users to obtain a SIPA (Surat Izin Pengambilan Air Tanah), an official Groundwater License, to manage their use and protect the environment.

This Izin Air Bawah Tanah (ABT) ensures groundwater is used responsibly and fairly. Anyone who takes water from the ground, whether for farming, factories, or housing, must follow the legal process to get this permit.

In this article, you will explore why the groundwater license is essential for Bali's businesses and the key steps to obtaining it.

What is a Groundwater License?

A Groundwater License (SIPA) is a legal permit to use air bawah tanah (groundwater). The government requires this Izin Air Bawah Tanah (ABT) to control groundwater use and protect the environment. SIPA confirms that air bawah tanah is used legally and outlines the water's volume, location, and intended use.

Legal Framework

The legal basis for SIPA is detailed in Law No. 7 of 2004 on Water Resources, emphasizing the importance of protecting groundwater sustainability. This regulation balances the need for development with preserving air bawah tanah ecosystems.

Why is a groundwater license necessary in Bali?

Securing an Izin Air Bawah Tanah (ABT) in Bali brings significant benefits, especially given the island's heavy reliance on water resources for tourism and hospitality.

Legal Use of Groundwater

• Allows resorts, restaurants, villas, and other businesses to extract groundwater legally.
• Prevents fines, restrictions, or legal action.

Compliance with Law

• Meets legal and environmental standards set by the Balinese government.
• Avoids penalties and potential operational shutdowns.

Community Trust & Social License

• Demonstrates responsible water use.
• Builds transparency and acceptance from local communities.

Environmental Protection

• Ensures extraction practices do not harm ecosystems or deplete groundwater reserves.
• Supports long-term water sustainability on the island.

Read more: Start tourism investment in Bali and Lombok

Who must obtain a groundwater license in Bali?

In Bali, any business or facility that extracts groundwater for non-personal or large-scale use must obtain a SIPA. This includes:

• Hotels and resorts using air bawah tanah for pools, bathrooms, and landscaping.
• Restaurants and cafés that rely on groundwater for cleaning, cooking, and sanitation.
• Villas and guesthouses with deep wells and consistent groundwater use.
• Spa and wellness centers draw water for showers, treatments, and cooling systems.
• Commercial, industrial, and large-scale businesses with groundwater extraction at more than 100 meters deep.

Even residential properties may need a SIPA if their groundwater use exceeds permitted limits or they are in regulated zones. Failing to secure a license can lead to penalties, service restrictions, or legal action.

How to obtain a groundwater license: Key requirements in Bali

Getting a license to use air bawah tanah in Bali involves administrative and technical steps. Here's how to apply for a SIPA in compliance with local laws.

1. Administrative Requirements

Before proceeding with the license submission, you will need to prepare these documents, such as:

• A valid business license (if applicable)
• Company profile or personal ID (for individuals)
• Land ownership or usage permit
• A letter of application and a signed statement of responsibility
• Environmental documents, such as UKL-UPL or AMDAL (if needed)

Read more: The importance of B3 waste permit in Indonesia

2. Technical Requirements

In addition to paperwork, providing technical information on groundwater extraction is mandatory to ensure the process has the least environmental impact. These include:

• A hydrogeological survey report
• Borehole data (location, depth, construction)
• Groundwater test results (volume and water quality)
• A map showing the well location

2. Submission and Review

Once all documents are ready, submit your application to Bali's environmental or water resource agency. They will review your documents and conduct a field inspection before the approval process

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4. Final Issuance

If your application is approved, you will receive a SIPA. This permit will state how much air bawah tanah you can use, where it can be taken from, and for what purpose.

Read more: How to obtain Industrial Business License (IUI) in Indonesia

Secure your groundwater license in Bali with Ascentium

Applying for a SIPA to use air bawah tanah can be complex, involving detailed paperwork and strict local regulations. It's best to partner with experts who understand the system inside and out to simplify the process.

Ascentium Indonesia (an Ascentium Company) provides a complete business license solution, including support for groundwater (SIPA) permits in Bali and other regulatory approvals. With our expert assistance, you can:

• Secure both your business and air bawah tanah licenses through a single, streamlined service
• Ensure full compliance with local regulations without the stress
• Save time and avoid costly errors with a transparent, guided process

Frequently Asked Questions