Detailed Arrangements and Administrative Fines Formula Set for Groundwater Utilization Approvals: Micro-Scale and Small-Scale Enterprises Exempt

Following the enforcement of Regulation of the Government No. 19 of 2025, the Minister of Energy and Mineral Resources (“Minister”) has now introduced a new set of guidelines that specifically address the utilization of groundwater resources, as well as various procedures for the imposition, calculation, payment and/or deposit of Non-Tax State Revenue (Penerimaan Negara Bukan Pajak – “PNBP”) in the form of administrative fines in relation to the issuance of groundwater utilization permits (“Utilization Permits”) and approvals for groundwater utilization (“Utilization Approvals”) through the issuance of Regulation No. 4 of 2026 (“Regulation 4/2026”).[1]