Groundwater Well Drilling Industry in Indonesia: Regulatory Framework, Technical Standards, and Government Programs for Sustainable Groundwater Development

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Executive Summary

Indonesia's groundwater well drilling industry operates within a comprehensive regulatory framework established by the Ministry of Energy and Mineral Resources (ESDM) and supporting agencies including the Geological Agency (Badan Geologi) and provincial governments. The regulatory structure encompasses permitting systems, technical standards, supervision procedures, and competency requirements designed to ensure sustainable groundwater resource management while protecting aquifer integrity and public safety. Recent regulatory developments including Permen ESDM No. 14/2024 on Groundwater Exploitation Permits and Kepmen ESDM 291.K/2023 on Standards for Groundwater Use Approval demonstrate ongoing government efforts to strengthen oversight and facilitate responsible groundwater development.

The government's commitment to universal clean water access, articulated through the Ministry of Public Works' target of 100% access by 2025, creates both opportunities and challenges for the groundwater drilling industry. Government programs including Badan Geologi's construction of 1,782 well units in water-scarce communities between 2005-2017, alongside corporate social responsibility initiatives by state-owned enterprises including Pertamina and Krakatau Steel, demonstrate multi-sector approaches to expanding water access. This analysis examines the regulatory framework, technical standards, government programs, hydrogeological considerations, and implementation challenges affecting Indonesia's groundwater drilling industry based on official government documents and technical guidelines.

Regulatory Framework and Institutional Structure

Indonesia's groundwater management operates under multi-layered regulatory frameworks spanning national legislation, ministerial regulations, and local government ordinances. The fundamental legal basis derives from PP (Peraturan Pemerintah) No. 28 Tahun 2025 on National Water Resource Management, which establishes principles for sustainable water resource utilization including groundwater extraction. This regulation provides the overarching framework within which sector-specific regulations issued by the Ministry of Energy and Mineral Resources establish detailed requirements for groundwater drilling and exploitation activities.

The regulatory framework recognizes different categories of groundwater use requiring varying levels of oversight and permitting. According to Kementerian ESDM communications reported by Detik Properti in 2024, not all residential properties require ESDM permits for well drilling, with specific criteria determining permit requirements based on extraction volume, well depth, and intended use. This tiered approach attempts to balance regulatory oversight with practical implementation capacity while focusing enforcement resources on larger-scale groundwater exploitation with greater potential environmental impacts.

Provincial and district governments maintain significant roles in groundwater management through regional regulations (Peraturan Daerah) that implement national frameworks within local contexts. The Jawa Tengah Provincial Government has developed comprehensive regional regulations on groundwater management, with evaluation studies examining alignment between local and national regulatory requirements documented in official provincial reports. This multi-level governance structure creates both coordination opportunities and jurisdictional complexity requiring clear delineation of authorities and responsibilities among different government levels.

Badan Geologi Programs and Technical Capacity Development

The Geological Agency (Badan Geologi) under the Ministry of Energy and Mineral Resources serves as the primary government institution for groundwater resource assessment, drilling operations for public benefit, and technical guidance for sustainable groundwater development. Badan Geologi's performance reports (Laporan Kinerja) for years 2017, 2019, 2020, 2022, and 2023 document extensive programs addressing water access challenges through professional well construction while advancing hydrogeological knowledge supporting informed resource management decisions.

Between 2005 and 2017, Badan Geologi constructed 1,782 groundwater well units for communities facing water scarcity, representing substantial public investment in expanding water access through professionally designed and constructed wells. These government-constructed wells serve multiple functions including direct water supply for underserved communities, demonstration of professional drilling practices and technical standards, and collection of hydrogeological data from diverse geological settings across Indonesia. In a subsequent focused initiative, Badan Geologi completed 138 wells specifically targeting areas with acute water scarcity, demonstrating continued commitment to addressing geographic disparities in water access.

The Badan Geologi annual performance reports document various groundwater-related activities beyond direct well construction, including hydrogeological assessments supporting regional water management planning, technical assistance to provincial governments developing groundwater management frameworks, and research programs advancing understanding of Indonesian aquifer systems. The 2023 performance report demonstrates continued institutional commitment to groundwater programs as essential components of national water security strategies, with documented achievements in hydrogeological mapping, technical guidance development, and inter-agency coordination supporting integrated water resource management.

Hydrogeological Assessment and Resource Characterization

Professional groundwater development depends fundamentally on comprehensive hydrogeological assessment characterizing aquifer systems, understanding recharge mechanisms, evaluating sustainable yields, and identifying potential risks including contamination sources or interference with existing users. The Badan Geologi Pedoman Penyusunan Peta Hidrogeologi Skala 1:250.000 provides standardized methodologies for hydrogeological mapping at regional scales, establishing consistent approaches to aquifer characterization across Indonesia's diverse geological settings.

Hydrogeological mapping programs integrate multiple data sources including geological mapping identifying water-bearing formations, geophysical surveys characterizing subsurface conditions, drilling data documenting aquifer depths and characteristics, hydrological monitoring quantifying recharge and discharge, and water quality analysis assessing fitness for various uses. This integrated approach enables development of comprehensive hydrogeological maps showing aquifer distributions, water quality patterns, recharge areas requiring protection, and zones with high groundwater development potential. These maps inform both regulatory decision-making regarding permit applications and technical planning for well construction projects.

Indonesia's geological diversity creates substantial variation in hydrogeological conditions across regions, requiring site-specific assessment approaches adapted to local geology. Volcanic regions including Java, Bali, and parts of Sumatra contain highly productive volcanic aquifers with excellent water quality but requiring understanding of fractured rock hydrology and potentially deep water tables. Sedimentary basins in Kalimantan and parts of Sumatra offer layered aquifer systems requiring careful stratigraphic analysis to target productive zones while avoiding unproductive or contaminated intervals. Coastal areas present particular challenges including saltwater intrusion risks requiring careful well design and extraction management. Limestone regions with karstic features create both opportunities for high-yield wells and risks of rapid contamination transport requiring enhanced source protection.

Technical Standards for Well Design and Construction

Professional well construction requires integration of hydrogeological knowledge, engineering principles, and appropriate materials selection to create reliable water supply systems while protecting aquifer resources. Technical guidelines developed by Badan Geologi and standardization documents from BSN (Badan Standardisasi Nasional) establish specifications for well design, construction procedures, materials selection, and quality control measures ensuring well integrity and long-term performance.

Well design begins with site-specific hydrogeological assessment determining appropriate well depth, diameter, casing program, screen intervals, and completion methods based on aquifer characteristics and intended use. Design considerations include aquifer depths and thicknesses, geological formations requiring casing support or sealing, screen placement targeting productive zones while excluding unproductive or contaminated intervals, and annular seal design preventing surface water infiltration or cross-contamination between aquifer zones. Professional well design balances multiple objectives including maximizing well efficiency and productivity, ensuring structural integrity throughout expected service life, protecting aquifer water quality from contamination, and facilitating future maintenance and rehabilitation.

Construction procedures documented in technical guidelines emphasize proper drilling techniques protecting aquifer integrity, appropriate drilling fluid management preventing formation damage, systematic geological logging documenting formations encountered, and quality control measures ensuring construction specifications are met. The BSN standard RSNI-3 on Mechanical Well Cleaning Procedures addresses post-construction maintenance requirements, recognizing that proper well maintenance extends operational life and maintains water quality. This standard provides detailed specifications for mechanical cleaning operations, equipment requirements, and safety protocols protecting both workers and aquifer resources during maintenance activities.

Materials selection requires consideration of multiple factors including corrosion resistance in specific groundwater chemistry conditions, mechanical strength for depths and pressures encountered, thermal expansion characteristics for temperature variations, and long-term durability ensuring service life appropriate to investment costs. Technical guidelines emphasize use of appropriate materials meeting specifications rather than cost-minimization approaches that may compromise well integrity or longevity.

Drilling Supervision and Quality Assurance

Kepmen ESDM 443.K/2023 on Drilling Supervision Procedures establishes comprehensive frameworks for monitoring drilling activities, verifying regulatory compliance, and ensuring adherence to technical standards throughout construction. The supervision framework recognizes that effective quality assurance requires oversight at multiple stages including pre-drilling review of technical plans and permit compliance, periodic inspection during construction at critical completion stages, and post-completion verification of well performance and construction quality.

Pre-drilling supervision includes review of permit documentation, verification that proposed well design meets technical standards and site conditions, assessment of contractor qualifications and equipment adequacy, and approval of construction plans before work commences. This proactive review aims to prevent problems through identification and correction of design deficiencies or inadequate planning before substantial resources are committed to construction. During construction, supervision procedures require inspection at critical stages including casing installation verification, screen placement confirmation, annular seal installation monitoring, and well development observation. These inspections verify that construction proceeds according to approved plans while allowing real-time adjustments for unexpected geological conditions.

Post-completion supervision includes performance testing through pump tests demonstrating well productivity and drawdown characteristics, water quality analysis verifying suitability for intended use and absence of contamination, completion inspection confirming construction specifications were met, and documentation review verifying that drilling logs, construction details, and test results are properly recorded. This comprehensive approach to quality assurance aims to ensure that completed wells meet professional standards while providing accountability for public investments or regulatory compliance requirements.

Implementation effectiveness depends critically on technical competency within supervision agencies, adequate staffing and equipment for field inspections, and institutional commitment to enforcement when deficiencies are identified. The Ministry of Energy and Mineral Resources continues developing supervision capacity through training programs, equipment procurement, and organizational development supporting effective oversight of drilling activities across Indonesia's diverse geographic conditions.

Environmental Protection and Sustainable Resource Management

Environmental protection principles embedded in Indonesia's groundwater regulations recognize that improper drilling practices can cause lasting damage to aquifer systems while sustainable groundwater development requires balancing extraction with natural recharge rates and protecting water quality from contamination. PP 28/2025 on Water Resource Management establishes overarching principles for sustainable use including environmental impact assessment for larger projects, protection of critical recharge areas, and monitoring requirements ensuring extraction remains within sustainable limits.

Aquifer protection during drilling requires specific technical measures preventing contamination pathways between surface and groundwater, isolating different aquifer zones to prevent cross-contamination, and ensuring well structural integrity throughout the expected service life. Technical guidelines emphasize proper sealing procedures including sanitary surface seals preventing surface water infiltration along well casings, intermediate seals isolating undesirable water zones from production intervals, and adequate grout placement in annular spaces providing permanent seals. These protective measures recognize that wells create permanent pathways penetrating natural confining layers that normally protect deep aquifers from surface contamination.

Long-term sustainability requires coordination among multiple groundwater users sharing common aquifer systems, as individual well performance depends on cumulative extraction affecting regional water levels and aquifer pressures. Provincial groundwater management frameworks attempt to coordinate exploitation through permit systems limiting total authorized extraction to sustainable levels based on hydrogeological assessments. Implementation effectiveness depends on comprehensive monitoring of actual extraction rates, enforcement of permit conditions, and inclusion of all significant users within regulatory systems. The challenge of monitoring dispersed groundwater use across large geographic areas requires innovative approaches including remote sensing technologies, statistical sampling programs, and user self-reporting systems with verification procedures.

Climate change impacts on groundwater resources create additional management challenges requiring adaptive approaches. Changes in precipitation patterns affect recharge rates while increased temperature and evaporation may reduce recharge even if total precipitation remains constant. Sea level rise in coastal areas increases saltwater intrusion risks requiring more conservative extraction management near coastlines. Groundwater management frameworks must incorporate these changing conditions through regular reassessment of sustainable yields and adaptive permit allocations responding to increasing resource conditions.

Provincial and Local Government Implementation

Provincial and district governments play critical roles in groundwater management through implementation of national frameworks, development of region-specific regulations, and direct oversight of drilling activities within their jurisdictions. The Jawa Tengah Provincial Government's comprehensive evaluation of regional groundwater regulations demonstrates ongoing efforts to align provincial frameworks with national requirements while addressing local hydrogeological conditions and development priorities. This evaluation process, documented in official provincial reports, examines consistency between regional regulations (Peraturan Daerah) and national frameworks while identifying implementation challenges and improvement opportunities.

Provincial implementation programs vary substantially across regions reflecting differences in hydrogeological conditions, water access challenges, institutional capacity, and development priorities. Provinces with substantial groundwater resources and high extraction rates typically develop more comprehensive management frameworks including detailed permitting systems, active monitoring programs, and enforcement mechanisms addressing over-extraction risks. Provinces with limited groundwater resources may focus regulatory attention on water quality protection and small-scale user management. Coastal provinces must address saltwater intrusion challenges requiring specific technical guidelines for well placement and extraction management near coastlines.

Local government taxation policies including groundwater taxes create fiscal instruments encouraging efficient use while generating revenues for water resource management programs. The Surakarta City Peraturan Walikota No. 18 Tahun 2024 on Groundwater Taxes demonstrates local implementation of fiscal policies related to groundwater use, with tax structures potentially differentiated by user type, extraction volume, or location relative to water scarcity conditions. These fiscal instruments complement regulatory approaches by creating economic incentives for water conservation while providing dedicated funding for water resource management activities including hydrogeological assessments, monitoring programs, and infrastructure investments.

Integration with National Water Access Programs

The Ministry of Public Works pursues ambitious targets for universal clean water access by 2025, requiring coordinated approaches utilizing appropriate combinations of piped infrastructure, community water systems, and groundwater development based on local conditions and resource availability. This integrated strategy recognizes that piped water infrastructure alone cannot achieve universal access within available timeframes and budgets, particularly in dispersed rural communities or areas with challenging topography making piped systems financially or technically infeasible. Professional groundwater development plays critical roles in these integrated approaches, providing reliable water supplies where piped systems remain impractical while protecting aquifer resources for long-term sustainability.

Government programs addressing water access integrate multiple approaches including expansion of piped municipal water systems in urban areas, development of community water supply systems in peri-urban and rural settings, construction of professional wells for institutional users including schools and health facilities, and facilitation of private well development through technical assistance and financing mechanisms. The Ministry of Public Works' SIGAP program (Sistem Irigasi dan Groundwater Air Tanah Penyediaan) includes groundwater development components addressing water supply needs in agricultural areas while supporting irrigation reliability during dry seasons.

Achieving universal water access requires substantial public investment, estimated in government planning documents at levels requiring sustained budget allocations over multiple years. The Ministry of Public Works acknowledges that achieving 100% access by 2025 requires support from multiple stakeholders including national government budget allocations, provincial and local government co-financing, private sector participation through corporate social responsibility programs and commercial investments, development partner support from international organizations, and community contributions through labor and local materials. This multi-stakeholder financing approach distributes costs while building shared ownership of water access infrastructure.

Corporate Social Responsibility and Private Sector Participation

State-owned enterprises and private companies contribute to water access expansion through corporate social responsibility programs including professional groundwater well construction targeting underserved communities. Pertamina's construction of numerous clean water wells in Sragen received national ESG (Environmental, Social, Governance) awards in 2025, demonstrating that corporate groundwater development programs can achieve both social impact objectives and corporate sustainability goals. These programs typically focus on communities lacking piped water access in areas where corporate operations occur, creating synergies between community development and corporate relationship building.

Krakatau Steel's artesian well programs address water challenges in industrial areas, demonstrating how industrial companies can leverage groundwater resources and technical expertise to support both operational requirements and community water access. The integration of corporate water needs with community benefit creates sustainable models where companies with drilling capabilities and hydrogeological expertise address local water challenges while building positive relationships with communities near their operations. These programs often achieve higher technical standards than might otherwise be available in underserved areas, demonstrating professional drilling practices while providing tangible community benefits.

Charitable organizations including HSI Berbagi implement groundwater well programs in 2025, expanding civil society participation in addressing water access challenges. These programs typically focus on remote or underserved communities where government programs may face logistical constraints or where local advocacy has identified acute needs. The capital market sector contributed to well construction in cities including Balikpapan through corporate social responsibility programs, demonstrating diverse sector engagement in water access initiatives. However, the effectiveness and sustainability of these various programs depend critically on adherence to professional standards and technical competency in drilling practices, areas where coordination with government technical agencies and compliance with regulatory frameworks remain essential for ensuring long-term project success.

Technical Training and Capacity Development

Professional competency in groundwater drilling requires integration of multiple technical domains including hydrogeology, civil engineering, materials science, and environmental protection. Educational infrastructure supporting professional development includes university programs in geological engineering, civil engineering with water resources specializations, technical vocational training in drilling operations, and continuing professional development for practicing professionals. However, gaps remain between academic curricula and practical field requirements, particularly regarding modern drilling technologies, current regulatory frameworks, and increasing environmental protection practices.

Badan Geologi contributes to capacity development through technical training programs for government personnel, guidance to provincial water management agencies, and documentation of best practices from government drilling programs. These capacity building initiatives transfer technical knowledge and operational experience accumulated through extensive government drilling operations to broader audiences including provincial governments, municipal utilities, and potentially private sector drilling contractors. The challenge lies in scaling these training programs to reach the large number of drilling professionals operating across Indonesia's diverse geographic and geological conditions.

Development of professional certification systems could verify drilling contractor competency while creating incentives for skill development and adherence to professional standards. Certification programs might include theoretical examinations covering hydrogeology, drilling techniques, materials science, and regulatory requirements, combined with practical assessments demonstrating drilling competency under supervised conditions. Tiered certification levels could correspond to different well types and complexity levels, from basic residential wells to complex industrial and municipal installations requiring advanced expertise. However, implementing effective certification systems requires substantial institutional development including establishment of certification authorities, development of examination systems, and creation of enforcement mechanisms ensuring that certification requirements are observed in practice.

Future Directions and Strategic Priorities

Strengthening Indonesia's groundwater drilling industry requires sustained attention to multiple interconnected challenges including professional competency development, regulatory enforcement capacity, technical standards, and institutional coordination among multiple government agencies with groundwater management responsibilities. Priority areas for continued development include expansion of hydrogeological assessment programs providing improved scientific foundations for resource management decisions, enhancement of supervision capacity within regulatory agencies enabling effective oversight of drilling activities, development of professional certification systems verifying contractor competency, and strengthening of provincial and local government implementation capacity.

Integration of modern technologies including geophysical investigation methods, advanced drilling techniques, real-time monitoring systems, and data management platforms can improve both resource assessment and operational oversight. Remote sensing technologies including satellite monitoring and drone surveys may enhance surveillance of drilling activities and groundwater use across large geographic areas, supplementing traditional field inspection approaches. Digital permitting systems and online monitoring platforms could improve administrative efficiency while enhancing transparency and accountability in regulatory processes.

Climate change adaptation requires incorporation of changing hydrological conditions into groundwater management frameworks, including reassessment of sustainable yields under altered recharge patterns, enhanced monitoring of coastal aquifer salinity, and adaptive management approaches responding to increasing resource conditions. Long-term sustainability depends on maintaining aquifer productivity and water quality for future generations while meeting current water demands through professionally designed and constructed wells that optimize resource utilization while protecting environmental values.

Conclusions and Strategic Recommendations

Indonesia's groundwater drilling industry operates within comprehensive regulatory frameworks established through national legislation and ministerial regulations, supported by technical standards and government programs aimed at expanding water access while protecting groundwater resources. The regulatory structure encompassing Permen ESDM No. 14/2024, Kepmen ESDM 443.K/2023, and supporting technical guidelines provides foundations for professional industry development. Government programs including Badan Geologi's construction of 1,782 wells and the Ministry of Public Works' pursuit of universal water access by 2025 demonstrate public sector commitment to groundwater as a critical water resource supporting national development objectives.

Continued strengthening requires sustained investment in professional competency development through educational programs and certification systems, enhancement of regulatory enforcement capacity through training and equipment, improvement of hydrogeological data supporting informed resource management, and institutional coordination among multiple government agencies. The diversity of Indonesia's hydrogeological conditions requires professional drilling practices adapted to regional variations while maintaining consistent adherence to fundamental principles protecting aquifer integrity and water quality.

Success depends on sustained political commitment, adequate resource allocation, and stakeholder cooperation across government agencies, educational institutions, private sector drilling companies, and communities depending on groundwater resources. The groundwater drilling industry's increasing toward professional maturity will determine whether Indonesia's substantial groundwater resources contribute sustainably to national water security or become degraded through practices that prioritize short-term cost minimization over long-term resource protection and reliable service delivery.