Investment Reports
How to ensure compliance through reporting on investments in Bali
Why are investment reports (LKPM) important in Bali?
✅ Who is required to submit the Investment Activity Report:
- Businesses investing more than IDR 500,000,000
- Businesses that have foreign shareholders
- Any new business operating in Bali
❌ Consequences of failure to report:
- Financial and legal sanctions
- Halt on processing visas and work permits for foreign investors and employees
- Import licenses can’t be issued
- Taxes cannot be reported
Laporan Kegiatan Penanaman Modal (LKPM) is the Indonesian term used to refer to the Investment Activity Report. Foreign-owned businesses operating in Bali are required to submit periodic reports to show how much of their authorized capital has been invested.
The Investment Coordinating Board (BKPM) verifies the submitted reports to assess and monitor market stability.
Companies without a business license must submit Investment Activity reports quarterly. If you already have a business license then the report is only required bi-annually.
What do you need to include in the investment report?
- Realizations on investment: Any transactions relating to acquiring equipment and furniture, office spaces, employee salaries, utility, and marketing fees.
- Source of finances: owned capital, financial loans, or retained earnings.
- Number of new employees. Report only the employees that have newly onboarded for the specific reporting period.
- Contractors and vendors
- Business concerns
- Legal documents: Business license, Identification Number to Operate, etc.
- Business activities and responsibilities per classification: examples include corporate social responsibility programs, employee training, and license requirements.
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Desita Lestari
Desita Lestari serves as Account Executive at Emerhub Jakarta.
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Fredrika Martha
Fredrica Martha is a Senior Account Manager at Emerhub in Bali.
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