The Badung Regency government has issued a formal notice (ref. B-937/GL.05/BGE/2026, dated 12 March 2026) reminding all commercial groundwater users in Bali that the deadline to obtain a Groundwater Use Permit (Izin Pengusahaan Air Tanah / ABT) is 31 March 2026. Businesses that miss this deadline face criminal sanctions under Indonesia's water resources law.
Who this affects: Any villa, hotel, restaurant, café, or commercial building in Bali that uses groundwater — whether through a well, borehole, or pump — and does not yet hold a valid ABT permit. This includes both businesses currently under construction and those already in operation.
Permit Name
Izin Pengusahaan Air Tanah (ABT)
Where to Apply
oss.go.id (online)
Issued by
Badung Regency / Ministry via OSS
Legal Basis
Law No. 6/2023 (Cipta Kerja)
Penalty for Non-Compliance
Criminal sanctions
1. What Is the ABT Permit?
ABT stands for Air Bawah Tanah — groundwater. The Izin Pengusahaan Air Tanah (ABT Permit) is a government-issued licence required for any commercial entity that extracts or uses groundwater for business purposes in Indonesia.
In Bali, where the tourism and hospitality sector places significant demand on the island's groundwater resources, this permit has been a legal requirement for some time. However, enforcement has now been tightened under Law No. 6 of 2023 (the Job Creation Law / Cipta Kerja), which introduced a transitional compliance period that expires on 31 March 2026.
The Badung Regency government — which covers areas including Seminyak, Canggu, Kerobokan, Kuta, Nusa Dua, and Jimbaran — has written directly to commercial groundwater users in the regency reminding them of this deadline and directing them to apply via OSS.
This is not a new obligation — it is an enforced deadline. Businesses that have been operating without an ABT permit have until 31 March 2026 to regularise their position. After this date, operating without a permit carries criminal penalties under Indonesia's water resources law — and as the government letter notes, summonses have already been issued to businesses in Bali.
2. Who Must Apply?
The ABT permit is required for any commercial business or property that uses groundwater. This includes:
🏨
Villas & Hotels
Any villa, guesthouse, or hotel using a well or borehole for water supply — whether for guest use, pools, landscaping, or operations.
🍽
Restaurants & Cafés
Food and beverage businesses drawing groundwater for kitchen, cleaning, or general operational use.
🏗
Buildings Under Construction
If your villa or commercial building is currently being constructed and will use groundwater once operational, the ABT permit should be processed now — not after completion.
🏪
Other Commercial Properties
Retail premises, spas, fitness centres, co-working spaces, and any other commercial building using groundwater for operational purposes.
🌊
Properties with Pools or Irrigation
Properties using groundwater specifically for swimming pools, garden irrigation, or other non-domestic water uses.
⚠
Already Operating Without a Permit
If your business is already operational and you do not yet have an ABT permit, you are already in non-compliance. Apply immediately.
Not sure if you need one? If your property has a well, borehole, or pump drawing water from underground for any commercial purpose, you almost certainly need an ABT permit. When in doubt, consult a licensed technical consultant — do not wait.
3. How to Apply
Applications for the ABT permit are submitted online via the OSS system at oss.go.id. The Badung Regency government has also published a video tutorial guide accessible via linktr.ee/infopag.
The application process is technical in nature and typically requires the assistance of a licensed technical consultant. The consultant will assess your groundwater usage, prepare the required technical documentation, and submit the application on your behalf.
1
Engage a Technical Consultant
The ABT permit application requires technical documentation about your groundwater usage — including depth, volume, and extraction method. A licensed technical consultant prepares this. This is not a legal or accounting process — it requires specialist technical expertise.
2
Technical Assessment & Document Preparation
The consultant will assess your groundwater source, prepare technical drawings or reports, and compile the required supporting documents for your OSS application.
3
Submit via OSS
The application is submitted electronically via oss.go.id. Document requirements and a video tutorial are available at linktr.ee/infopag.
4
Permit Issued
Once approved, the ABT permit is issued via OSS. Keep a copy on file — you will need it for ongoing reporting obligations (see Section 5).
Act now: The 31 March 2026 deadline is very close. Given the time required for technical assessment and document preparation, businesses should engage a consultant immediately. Do not wait until the final days of March.
4. Need a Technical Consultant?
The ABT permit is a technical process that falls outside the scope of legal and accounting advisory services. Smart Advisory Solutions does not directly handle ABT permit applications. However, based on prior experience assisting clients in Badung, we are able to refer you to a trusted technical consultant who has successfully obtained ABT permits for commercial properties in Bali.
Recommended Technical Consultant — ABT Permits, Bali
Bapak Gilang
ABT Permit Specialist · Badung & surrounding areas
📞 +62 817 4750 793
Disclaimer: Smart Advisory Solutions is not affiliated with, employed by, or commercially associated with this consultant. This referral is provided as a courtesy based on prior client experience only. SAS does not accept any responsibility for the services provided by third-party consultants. Clients engage consultants directly and independently.
When contacting the consultant, be ready to provide: the address and type of your property, the nature of your groundwater use (well, borehole, pump), and whether your building is operational or still under construction.
5. Ongoing Reporting Obligations
Obtaining the ABT permit is not a one-time task. Once issued, permit holders are required to submit periodic groundwater usage reports to the relevant authority. These reports are a condition of the permit and non-submission can jeopardise your permit status.
Every
2–3
months
ABT permit holders are required to submit groundwater usage reports on a regular basis — typically every 2 to 3 months depending on the terms of the permit. These reports document the volume of groundwater extracted and must be submitted to the issuing authority. Missing reporting deadlines is a common compliance gap — set reminders as soon as your permit is issued.
Stay on top of it: Many permit holders obtain their ABT permit and then forget about the reporting obligation. Build the reporting schedule into your business calendar from day one — your consultant can advise on the exact reporting frequency and format required for your permit.
6. Penalties for Non-Compliance
The consequences of operating without a valid ABT permit are serious. Under Law No. 6 of 2023 (the Job Creation Law / Cipta Kerja), which governs water resource management in Indonesia, commercial groundwater users who do not hold the required permit are subject to criminal sanctions.
| Violation | Consequence |
|---|
| Operating without an ABT permit after 31 March 2026 | Criminal sanctions under water resources law · potential police summons |
| Failing to submit periodic usage reports | Risk to permit validity · potential administrative sanctions |
| Under-reporting groundwater usage | Regulatory penalties · permit review |
This is not theoretical: The Badung government's letter specifically notes that criminal sanctions under water resources law apply after 31 March 2026. SAS is aware of cases where clients have already received police summonses related to ABT non-compliance. Do not treat this deadline as advisory.
7. What to Do Right Now
Given the 31 March 2026 deadline, here is what you should do immediately:
| If Your Situation Is... | Action Required | Urgency |
|---|
| Building under construction, uses groundwater | Confirm with your contractor that ABT is being processed. If not, engage a technical consultant now. | Immediate |
| Business operating, no ABT permit | Engage a technical consultant immediately to begin the application process before 31 March 2026. | Immediate |
| ABT permit held but reports not submitted | Check your reporting schedule and submit any outstanding reports. Set reminders for future reporting dates. | Urgent |
| Not sure if you need a permit | If you use any groundwater on your commercial property, assume you need one and consult a specialist. | This week |
| ABT permit held and reports current | No immediate action needed. Ensure your reporting schedule stays on track. | Ongoing |
Frequently Asked Questions
What is an ABT permit?
ABT stands for Air Bawah Tanah (groundwater). The Izin Pengusahaan Air Tanah is a government-issued permit required for any commercial business that extracts or uses groundwater. In Bali, this applies to villas, hotels, restaurants, and other commercial properties using wells, boreholes, or pumps to draw water from underground.
What is the deadline to apply?
The transitional compliance period under Law No. 6 of 2023 ends on 31 March 2026. Businesses that do not have a valid ABT permit by this date are subject to criminal sanctions under Indonesia's water resources law.
My building is still under construction — do I need an ABT permit now?
Yes. If your building will use groundwater once operational, the ABT permit should be processed during or before construction — not after completion. Confirm with your contractor that this is being handled. If it is not, engage a technical consultant immediately.
Can Smart Advisory Solutions handle my ABT permit application?
No. The ABT permit is a technical process requiring specialist expertise in groundwater assessment and environmental documentation. This falls outside SAS's scope of legal and accounting services. However, we can refer you to a trusted ABT consultant in Bali who has experience assisting commercial properties in Badung.
I already have an ABT permit. Do I need to do anything?
If you already hold a valid ABT permit, the immediate deadline does not apply to you. However, you should ensure you are meeting your ongoing reporting obligations — ABT permit holders are typically required to submit groundwater usage reports every 2 to 3 months. Check your permit conditions and ensure all reports are current.
Where do I apply for the ABT permit?
Applications are submitted online via the OSS system at oss.go.id. Document requirements and a video tutorial are available at linktr.ee/infopag. In practice, most applicants engage a technical consultant to prepare and submit the application on their behalf.
What are the penalties for not having a permit after 31 March 2026?
Under Law No. 6 of 2023, operating without a required groundwater permit after the compliance deadline carries criminal sanctions under water resources law. This can include police summonses and criminal prosecution. SAS is aware of cases in Bali where businesses have already received summonses for ABT non-compliance.
Questions about your compliance obligations in Bali?
While SAS does not handle ABT permit applications directly, our team can help you understand your broader regulatory obligations and connect you with the right specialists. Contact us if you are unsure where to start.
Disclaimer: This article is intended for informational purposes only and does not constitute legal, technical, or environmental advice. Information is based on the Badung Regency government notice ref. B-937/GL.05/BGE/2026 dated 12 March 2026 and Law No. 6 of 2023. Regulatory requirements may vary by regency and property type. Smart Advisory Solutions is not affiliated with any third-party consultants referenced in this article. Please consult a qualified technical specialist for advice specific to your property and circumstances.
