How To Submit Your Investment Report (LKPM) in Indonesia
There are serious consequences for failing to submit your investment activity report (LKPM) on time. Keep reading to find out you how to submit the LKPM in Indonesia.
Table of contents
Laporan Kegiatan Penanaman Modal (LKPM) stands for the Investment Activity Report in Indonesia. Indonesia’s Investment Coordinating Board (BKPM) requires businesses to submit this report periodically.
Strict compliance is essential because failure to do so leads to highly serious sanctions. Below you will find everything you need to know about LKPM reporting. We will also provide you with information to ensure that you maintain compliance with the BKPM.
Submission of the Investment Activity Report (LKPM) is a requirement for companies investing more than IDR 500,000,000 (approx. USD 33,900). This includes all companies with foreign shareholders as the minimum capital requirement for such is IDR 2,500,000,000. The company must also have an Identification Number to Operate or Nomor Induk Berusaha (NIB).
However, this does not apply to the following:
- Finance companies
- Insurance companies
- Banking companies
- Companies in the oil and gas industry
- Companies with expired operating licenses
New companies also have to submit the investment activity report. Once the Online Single Submission (OSS) System issues the NIB to your company, you will have to start submitting the LKPM.
Report your Company’s Investments: Quarterly or Bi-annually?
Businesses must submit their Investment Activity Report (LKPM) quarterly or bi-annually per Investment Coordinating Board (BKPM) regulations. The frequency of submission depends on your company’s operational status. Submitting the LKPM helps the BKPM monitor and assess the market.
Companies without a business license yet
Companies that already have a business license.
You must submit your Investment Activity Report or LKPM through the National Single Window for Investment (NSWi). The NSWi is the Investment Coordinating Board’s (BKPM) online system.
When to Submit Investment Activity Report or LKPM
The table below shows dates for quarterly submission. For companies submitting bi-annually, follow the schedule for the second and fourth quarters.
|First quarter||Latest by 10th of April|
|Second quarter||Latest by 10th of July|
|Third quarter||Latest by 10th of October|
|Fourth quarter||Latest by 10th of January|
Emerhub can submit your LKPM report on your behalf. Our team will make sure that your LKPM report is accurate and submitted on time. Fill out the form below and our consultants from Bali or Jakarta will get in touch with you.
What to include in the Investment Activity Report (LKPM)
LKPM report of a limited liability company consists of the following:
- Realization of your investment in Indonesia. This includes the purchase of equipment and furniture. This also includes rental fees for your office. You must also include the salaries of your employees, utility expenses, and marketing expenses.
- Source of funds. The LKPM must include where your company is getting funds, whether it is from your own capital, a loan, or retained earnings.
- Number of additional employees. You only need to report new employees for that period. Not the total number of employees in your company.
- Number of contractors and vendors you are using.
- Issues the company is facing.
- The company’s legal documents. These include your business license and Identification Number to Operate, among others.
- Your company’s activities and responsibilities. For example, corporate social responsibility programs, employee training, and license requirements. Note that your responsibilities and activities must follow regulations and restrictions for your business classification.
Submit your LKPM report in Indonesia.
Emerhub will help you prepare your investment activity report and take care of submission for you.
Failure to submit your investment report will result in administrative sanctions.
Should you miss the deadline, the Investment Coordinating Board (BKPM) will send a warning letter. Without action on your end, the Indonesian government will block your company’s access to online systems. Without access to these systems, you will be unable to do the following:
- Process visas and work permits for foreign investors and employees
- Report taxes
- Get import approvals
Further inaction may lead to the cancellation of your company’s permits and licenses. You must act quickly once you are aware of the missed deadline. Emerhub can assist in matters related to LKPM.
Our team can help you prepare your LKPM and submit it on your behalf. Our consultants can help you maintain compliance in Indonesia. Fill out the form below and we will get in touch with you right away.
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