A growing controversy over the water source used by bottled water giant AQUA has prompted Indonesia’s Ministry of Energy and Mineral Resources (ESDM) to reevaluate groundwater extraction permits nationwide. The issue centers on allegations that AQUA has been sourcing water from borewells rather than mountain springs, contradicting its long-standing brand image. As public scrutiny intensifies, the government is signaling a broader push for environmental compliance and corporate transparency.
Key Facts & Background
- Triggering event: Public concern arose after an inspection at AQUA’s Subang factory revealed the use of groundwater from borewells, not mountain springs as advertised.
- Government response:
- ESDM will evaluate all groundwater extraction permits, including those held by AQUA.
- Companies found in violation of environmental or licensing standards may face suspension or revocation of permits.
- Legal framework:
- Groundwater extraction is regulated under Ministerial Regulation No. 14/2024 on Groundwater Utilization Permits.
- Permits are issued following technical and environmental assessments by the Geological Agency.
- Permit statistics:
- As of October 17, 2025, 4,700 groundwater extraction permits have been issued nationwide, including to bottled water companies.
- Consumer protection angle:
- The National Consumer Protection Agency (BPKN RI) plans to summon AQUA’s management to clarify discrepancies between advertising claims and actual water sources.
- Brand image issue:
- AQUA has long marketed its product as “pure mountain spring water,” raising concerns about misleading advertising if groundwater is used instead.
Strategic Insights
The AQUA groundwater controversy underscores the growing intersection of environmental governance, corporate accountability, and consumer trust in Indonesia’s fast-growing bottled water industry. While groundwater extraction is legally permissible under regulated conditions, the public backlash reveals a deeper concern: the perceived gap between brand narratives and operational realities.
This case is not just about one company—it reflects broader systemic challenges in resource governance. With over 4,700 groundwater permits issued across the country, the government faces mounting pressure to ensure that extraction practices are sustainable, transparent, and aligned with environmental thresholds. Deputy Minister Yuliot Tanjung’s statement that permits may be revoked if violations are found signals a shift toward stricter enforcement and environmental stewardship.
From a consumer protection standpoint, the controversy highlights the importance of truth in advertising. AQUA’s brand equity has long been built on the promise of pristine mountain spring water. If proven misleading, the reputational damage could be significant—not only for AQUA but for the broader bottled water industry. This may prompt regulators to tighten labeling standards and require clearer disclosures about water sources.
The incident also raises questions about groundwater sustainability. Java’s aquifers are already under stress, and unchecked industrial extraction could exacerbate water scarcity, affect local communities, and threaten ecological balance. A comprehensive audit of groundwater use, particularly in water-intensive industries, is essential to safeguard long-term water security.
Looking ahead, this controversy could catalyze reforms in how Indonesia manages its natural resources. Enhanced transparency, community engagement, and digital monitoring of water extraction could become standard practice. For companies, aligning operational practices with brand promises and environmental norms will be critical to maintaining public trust and regulatory compliance.