17 May, 2016
Government Regulation No. 121 of 2015, dated December 28, 2015, regarding Water Resource Utilization Business. This Regulation was promulgated in response to a decision of the Constitutional Court, which earlier revoked Law No. 7 of 2004 regarding Water Resources. It states that a license for water resource utilization is granted only after a strict review, and that private business entities and individuals will be given last priority for water resource utilization licenses. The Regulation distinguishes between two types of license, based on the type of water utilized: (i) Water Resource Utilization License for the utilization of surface water, and (ii) Groundwater Utilization License for the utilization
of groundwater. It also addresses the mechanism to obtain these licenses. Existing licenses are valid until the date of their expiration. This Regulation came into force on the date of its promulgation.
Government Regulation No. 122 of 2015, dated December 28, 2015, regarding Drinking Water Provision System. This Regulation, as the name implies, governs the implementation of drinking water provision systems (sistem penyediaan air minum or “SPAM”). It was promulgated in response to a decision of the Constitutional Court, which earlier revoked Law No. 7 of 2004 regarding Water Resources. It states that the administration of SPAM is conducted by (i) state- or regional-owned enterprises, (ii) designated units of the central or regional government, (iii) community groups, or (iv) business entities. The provisions of the Regulation imply that the provision of SPAM by private business entities will be given the last priority. This Regulation came into force on the date of its promulgation.
For further information, please contact:
Dyah Soewito, Partner, Soewito Suhardiman Eddymurthy Kardono
dyahsoewito@ssek.com
