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) 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.
Which Companies Should Submit Investment Activity Reports in Indonesia?
The following business subjects are required to submit LKPM to the BPOM:
- 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
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 submit the investment activity report every three months (quarterly). 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.
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 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 utilising the Electronic Investment Information and Licensing Services (SPIPISE) system, as previously required under Regulation 7/2018, the submission of LKPM should now be completed via the OSS 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 OSS system.
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 Cekindo.
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.
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