Investment Reports (LKPM)
How to ensure compliance through reporting on investments in Indonesia
Why do you need to submit investment reports in Indonesia?
Laporan Kegiatan Penanaman Modal (LKPM) is the term commonly used to refer to the Investment Activity Report in Indonesia. Indonesia’s Investment Coordinating Board (BKPM) requires businesses to submit this report periodically to ensure efficient monitoring and assessment of the market.
Investment Activity reports must be submitted either quarterly for companies that do not yet have a business license, or bi-annually for companies that have a business license.
What do you need to include in the investment report?
- Realizations on investment: Purchase of equipment and furniture, office rental fees, employee salaries, utility, and marketing expenses.
- Source of funds: owned capital, a loan, or retained earnings.
- Number of additional employees. Report only the new employees for a specific reporting period.
- Number of contractors and vendors
- Company issues of concern
- The company’s legal documents: Business license, Identification Number to Operate, etc.
- Company activities and responsibilities: examples include corporate social responsibility programs, employee training, and license requirements. These must follow the regulations and restrictions of the company’s business classification.