Investment Activity Report to Investment Coordinating Board
Table of contents Who needs to reportTimeline of reportingÂ Investment Activity ReportWho wants the informationHow to reportWhy all this is necessarySources All most people know about the Investment Activity Report or LKPM when turning to us is that it is an extra burden on their company and that it takes time. Think of LKPM as brushing […]
Table of contents
All most people know about the Investment Activity Report or LKPM when turning to us is that it is an extra burden on their company and that it takes time. Think of LKPM as brushing your teeth: it doesn’t take long and if done regularly and correctly, it keeps major problems away.
This article provides you a blueprint on how we do this ‘brushing’ for our corporate customers with minimal involvement on their side.
Every foreign owned limited liability company (PT PMA) is obliged to report its investment activity. There’s no way around it. A few additional pieces of information, though.
- Companies granted import duty exemption, should submit their import realization report attached together with copy of the notification of import of goods (PIB) given by the Directorate General of Customs and Excise;
- In the case that a company has undergone a merger, the surviving company should submit LKPM for all capital investment activities as the result of the merger.
Timeline of reporting Investment Activity Report
There are different deadlines depending on what your legal entity is and what stage of your business you are in:
- Companies which are still in the development process are supposed to report periodically every 3 months:
- January-March report before April 5th,
- April-June before July 5th,
- July-September before October 5th,
- October-December before January 5th;
- Companies that have obtained Business Licence, LKPM is to be submitted every semester (so twice a year):
- January-June before end of July,
- July-December before end of January;
- Foreign company representative office, LKPM is to be submitted in one time, end of every calendar year.
- Companies whose capital investment activity covers more than one municipality/city, must submitted LKPM for each of the municipalities/cities.
- Companies whose capital investment activity consists of more than one business fields, has to report each business field in a separate report.
- Companies that are located in free trade and free port zone as well as in specific economic zone have to submit a LKPM to each of the head of the zones concerned. A copy also has to be sent to Head of BKPM Deputy for Control of Capital Investment Implementation.
There are many ways to submit your Investment Activity Report:
- Directly to BKPM by submitting the hard copy version; OR
- Via email to [email protected]; OR
- Fill an online application through a system called SPIPISE (to get the access, you should request directly from BKPM offices).
BKPM requires that companies appoint a certain person to be responsible for the making of the report and that person be named when submitting the report. The person does not need to be an employee of the company and Emerhub will gladly take care of your Investment Activity Reports. You are also welcome to read our detailed article on what to report and how to fill LKPM.
Investment Plan Reporting is part of our corporate compliance service. We know everyone likes watching videos better than reading; so here, a short video explaining what we mean with corporate compliance:
You might as why you have to spend so much time reporting on a plan that you have already launched. Well, officially the government wants Investment Activity Report to be submitted in order to increase the monitoring of capital investment realization and to monitor investors’ activities challenges while investing in Indonesia. While this may be using up scarce resources that you would gladly use elsewhere, there are no shortcuts when it comes to reporting your investment plan.
This article is up-to-date and the information used is from these laws, if you want to check them out yourself: Investment Activity Report govern by Regulation of the Head of BKPM No.13 of 2009 dated 23 December 2009 as amended by a Regulation of Head of BKPM No.7 of 2010 dated 31 March 2010 concerning Guidelines and Procedures for the Control of Capital Investment Implementation.
Let's grow your business in Indonesia
Get in touch with Emerhub by filling in the form below and our consultants will reach out to you within a few working hours.
More articles from Indonesia
Should you get the new Indonesian Second Home Visa?
Brand-new Indonesian Second Home program is a new way to live in Indonesia. Learn if meets your needs.
Digitization is accelerating the growth of MSMEs in Indonesia
Indonesia is making rapid progress towards digitization as the country’s e-commerce sector depends heavily on the mobile-first approach. By the end of the year, the country will have 83 percent internet users with an average yearly spend of USD 620. This creates a massive opportunity for investors to invest in Indonesia because of this unique customer behaviour.
Why are foreigners Investing in Lombok instead of Bali this year?
Lombok is on the precipice of becoming the next Bali for investors! Discover why investing in Lombok is gaining investors’ attention in 2022.
Introducing Seller of Record (SoR) service by Emerhub
A Seller of Record (SoR) is a legal entity that sells goods or services to end users. The SoR is especially useful for businesses that do not have a local presence but sell to interstate or global customers.
Growth Signals Detected in Indonesia’s Investment Report for Q2 2022
The World Bank’s Indonesia Economic Prospects report for June 2022 predicts that Indonesia’s economy would grow 5.1 percent in 2022 and 5.3 percent in 2023, as the pressures of deteriorating global economic conditions, increasing inflation, and tightened external credit begin to weigh.
Indonesia is set to become the next long-term destination for Digital Nomads
The Indonesian government is said to be launching a special Digital Nomad Visa in an effort to entice more overseas employees to the country.