A Guide to Investment Activity Report (LKPM) in Indonesia

In accordance with Regulation No. 6 of 2020, business entities in Indonesia are obliged to submit their investment activity reports (Laporan Kegiatan Penanaman Modal – LKPM report) providing a development or construction report (if a business is still non-operational) and a production or operation report (if operations have already started).

Failure to do so will lead to sanctions, such as cancelation of business license, revocation of registration certificate, closure of administrative branch office and imposition of administrative sanctions, imposed by the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM) or other relevant investment boards in Indonesia.

Why LKPM Report is Mandatory for Businesses

LKPM reporting is a non-negotiable requirement for all companies with an NIB in Indonesia. Beyond being a legal obligation, it plays a vital role in protecting business continuity and compliance.

Why it is mandatory:

• License protection: Failure to submit may lead to suspension or revocation of business licenses.
• Access to incentives: Accurate reports are often a condition for tax holidays, allowances, or other investment facilities.
• Government monitoring: Helps authorities track your investment progress and business activities.
• Risk prevention: Ensures your business avoids fines, delays, and compliance penalties.

Which Companies Should Submit Investment Activity Reports in Indonesia?

The following business subjects are required to submit investment reporting to the BKPM:

• Any business subjects with investment value of more than IDR 50 million (Cv, Firma, UD, Foundation) and have business identification numbers (Nomor Induk Berusaha – NIB)
• Local PT
• PT. PMA
• Foreign Company Representative Offices
• Foreign Trading Company Representatives
• Foreign Construction Service Enterprise Representative Offices
• Foreign Oil-and-Gas Representative Offices

What Should be Reported in LKPM?

To uphold Indonesia investment compliance, all registered business entities are required to submit their LKPM reports accurately through the OSS system to prevent penalties.

Key information that must be included in every LKPM report:

• Investment realization: Capital spent or injected during the reporting period.
• Operational activities: Production output, sales data, or service performance.
• Employment data: Updates on both local and foreign employees.
• Business challenges: Any obstacles faced in carrying out the investment plan.
• Future projections: Planned investments, expansions, or next steps.

Accurate BKPM investment reporting ensures businesses remain credible, compliant, and eligible for investment incentives.

LKPM Reporting Period for Companies in Indonesia

Businesses with investment value of between IDR 50 million and IDR 500 million (referred to as “Investment Value I”) are required to submit the investment activity report every six months (semesterly). Deadlines are as follows:

• Semester I deadline: 10 July
• Semester II deadline: 10 January

Businesses with investment value of between IDR 500 million and IDR 10 billion (“Investment Value II”) and more than IDR 10 billion (“Investment Value III”) are required to do quarterly LKPM submissions.. Details are as follows:

• January – March period, LKPM must be submitted by April 10th of the same year.
• April – June period, LKPM must be submitted by July 10th of the same year.
• July – September period, LKPM must be submitted by October 10th of the same year.
• October – December period, LKPM must be submitted by January 10th of the following year.

READ MORE:

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Furthermore, businesses with Investment Value I should take note of the following:

• Parties that are issued business licenses during the first five months of a semester are required to submit LKPM for the first time during the semester in which the business license is issued;
• Parties that are issued business licenses during the sixth month of a semester are required to submit LKPM for the first time during the following semester from the one in which the business license is issued.

Businesses with Investment Value II and Investment Value III should jot down these points:

• Parties that are issued business licenses during the first two months of a quarterly period are required to submit LKPM report for the first time during the quarterly period in which the business license is issued;
• Parties that are issued business licenses during the third month of a quarterly period are required to submit LKPM for the first time during the following quarter from the one in which the business license is issued.

LKPM Reporting Procedure to BKPM

• Instead of utilizing the Electronic Investment Information and Licensing Services (SPIPISE) system, as previously required under Regulation 7/2018, the submission of LKPM report should now be completed via the LKPM OSS (Online Single Submission) system.
• In order to submit an LKPM, a business must first secure access rights to the OSS system, which are granted when registering for a NIB.
• Verifications and evaluations of investment realization data input into the LKPM should now to be completed via the online system.

LKPM Report Submissions for Businesses Under Construction Phase

Even if your business has not yet started commercial operations, LKPM reporting is still mandatory. Unlike operating businesses that must report revenue, production output, and market activities, companies under construction must include these in their online BKPM report:

• Investment Realization: Capital spent on land, building, or machinery
• Project Progress: Updates on land acquisition, building, machinery installation, or other preparatory activities.
• Employment Data: Number of local and foreign workers involved in the construction stage.
• Challenges Faced: Any obstacles delaying the construction or setup process.
• Planned Timeline: Target for moving from construction to commercial operation.

These details show the government that investment is actively progressing, even if commercial operations have not yet begun.

Not Sure How to Compile and Submit Your Investment Activity Report?

In case you are having trouble, it is always best to engage a professional consultant who has already had many years of experience in preparing and submitting investment reports for foreign owned companies and other kinds of companies in Indonesia, like InCorp Indonesia (an Ascentium Company).

Get in touch with us now by filling in the form below. You are also welcome to visit our offices in Jakarta, Bali and Semarang.

Frequently Asked Questions