In accordance with Law No. 25 of 2007, all foreign owned companies in Indonesia are obliged to submit their investment activity reports (Laporan Kegiatan Penanaman Modal – LKPM) providing their investment activities in detail.
Failure to do so will lead to administrative sanctions, including investment license being revoked, imposed by the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM) or other relevant investment boards in Indonesia. The deadline for report submission for 2019 is 10 July.
As mentioned above, the investment activity report must be submitted on or before the deadline, which is 10 July of the current year. This regulation applies to foreign owned companies that have successfully obtained a business license. To comply with regulations, it is mandatory for these companies to submit a report every six months with details as follows:
On the other hand, foreign owned companies that are yet to acquire business license (still in the development process) are required to submit the investment activity report every three months. Details are as follows:
It is important to take note that if your foreign owned company runs capital investment activities in more than one city or municipality, you will have to submit your LKPM to each city or municipality.
The same thing applies to foreign owned companies that are investing in numerous business sectors. If your company is one of them, you will have to declare each business field by preparing a separate report.
The BKPM has provided the forms that can be used for all foreign owned companies to submit their reports. It is a must to prepare the report in accordance with the forms.
With regard to reporting it to BKPM, there are three options that you can choose from:
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, like Cekindo.
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