Following the recent Constitutional Court decision declaring Law No. 7 of 2004 on Water Resources (“2004 Law”) as null and void, the government is currently preparing a new government regulation and several ministerial regulations in response to the decision and in anticipation of consequent legal uncertainty in the water business industry. Due to the decision, water management is now falls under Law No. 11 of 1974 on Water (“1974 Law”).
Basuki Hadimuljono, Minister of Public Works and Housing, informed that the new regulations will ensure government control over water and limit the domination of private entities over water resources as mandated by the Constitutional Court.
Furthermore, Mr. Hadimuljono also indicated that he has organized a meeting with the Minister of Law and Human Rights to discuss existing water utilization permits that have has already been granted.
“We will prepare a government regulation to implement the 1974 Law,”said Mr. Hadimuljono in Jakarta on Wednesday.
For the long term, Mr. Hadimuljono said that the government will draft a new bill on water resources to be discussed with the House of Representatives. A new bill is urgently required as the 1974 Law is insufficient to accommodate the current circumstances.
Givingdetails, Hartanto, Secretary for Director General of Water Resources, explained that 21 ministerial regulations will be issued to respond to the Constitutional Court decision. The government has ensured that all these regulations will reflect the six main principles stated in the Constitutional Court’s decision, including direct utilization of water by State or Regional Owned Enterprises (BUMN/BUMD).
Mr. Hartanto expects that the government regulation and ministerial regulations can be issued by April at the latest.
“By April all the regulations will be completed,” said Mr. Hartanto.
Demanding for Real Transformation
One of the applicants for the judicial review of the 2004 Law, Marwan Batubara, is demanding the government comprehensively change the concept of water utilization in Indonesia.
Mr. Batubara also reminded the government to not repeat the same mistake it did when responding to the Constitutional Court’s decision to dissolve BP Migas in 2012. Instead of implementing the decision, the government established SKK Migas which basically has the same role as BP Migas did.
“In utilizing water, we want the government to prioritize the public over private entities”, said Mr. Batubara who also serves as Director of the Indonesian Institute of Resource Studies (IRESS).
To implement the decision, Mr. Batubara is also urging the government to maximize the role of BUMN and BUMD. If BUMDs have insufficient funds to utilize water resources, it is mandatory for the regional and central governments to provide necessary assistance to BUMDs.
Moreover, Mr. Batubara is also suggesting the President issue a government regulation in lieu of law (Perpu) as a short term response. At the same time, the government must also initiate a new draft bill on water resources to the House of Representative.
“The government could issue a Perpu while waiting for a new law on water resources”, suggested Mr. Batubara.
(For more information on Constitutional Court Decision, see ILB No. 2589)
Following the recent Constitutional Court decision declaring Law No. 7 of 2004 on Water Resources (“2004 Law”) as null and void, the government is currently preparing a new government regulation and several ministerial regulations in response to the decision and in anticipation of consequent legal uncertainty in the water business industry. Due to the decision, water management is now falls under Law No. 11 of 1974 on Water (“1974 Law”).
Basuki Hadimuljono, Minister of Public Works and Housing, informed that the new regulations will ensure government control over water and limit the domination of private entities over water resources as mandated by the Constitutional Court.
Furthermore, Mr. Hadimuljono also indicated that he has organized a meeting with the Minister of Law and Human Rights to discuss existing water utilization permits that have has already been granted.
“We will prepare a government regulation to implement the 1974 Law,”said Mr. Hadimuljono in Jakarta on Wednesday.
For the long term, Mr. Hadimuljono said that the government will draft a new bill on water resources to be discussed with the House of Representatives. A new bill is urgently required as the 1974 Law is insufficient to accommodate the current circumstances.
Givingdetails, Hartanto, Secretary for Director General of Water Resources, explained that 21 ministerial regulations will be issued to respond to the Constitutional Court decision. The government has ensured that all these regulations will reflect the six main principles stated in the Constitutional Court’s decision, including direct utilization of water by State or Regional Owned Enterprises (BUMN/BUMD).
Mr. Hartanto expects that the government regulation and ministerial regulations can be issued by April at the latest.
“By April all the regulations will be completed,” said Mr. Hartanto.
Demanding for Real Transformation
One of the applicants for the judicial review of the 2004 Law, Marwan Batubara, is demanding the government comprehensively change the concept of water utilization in Indonesia.
Mr. Batubara also reminded the government to not repeat the same mistake it did when responding to the Constitutional Court’s decision to dissolve BP Migas in 2012. Instead of implementing the decision, the government established SKK Migas which basically has the same role as BP Migas did.
“In utilizing water, we want the government to prioritize the public over private entities”, said Mr. Batubara who also serves as Director of the Indonesian Institute of Resource Studies (IRESS).
To implement the decision, Mr. Batubara is also urging the government to maximize the role of BUMN and BUMD. If BUMDs have insufficient funds to utilize water resources, it is mandatory for the regional and central governments to provide necessary assistance to BUMDs.
Moreover, Mr. Batubara is also suggesting the President issue a government regulation in lieu of law (Perpu) as a short term response. At the same time, the government must also initiate a new draft bill on water resources to the House of Representative.
“The government could issue a Perpu while waiting for a new law on water resources”, suggested Mr. Batubara.
(For more information on Constitutional Court Decision, see ILB No. 2589)