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Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
If you’re running a business in Indonesia, the Investment Activity Report (known locally as Laporan Kegiatan Penanaman Modal or LKPM) is a periodical requirement by the Investment Coordinating Board (BKPM). If you miss a deadline, you run the risk of losing access to government systems or having your business license suspended. Repeat offenses can face permanent permit revocation.
This guide breaks down what you need to know about LKPM filing. This includes who must file, what to include, how to submit it step-by-step through the OSS system.
Understanding LKPM for Businesses in Indonesia
The LKPM is a mandatory periodic report that tracks the development of your business investment. It is a requirement under Article 15(c) of Law No. 25 of 2007 on Investment, reinforced most recently by BKPM Regulation No. 5 of 2025.
This report details your capital realization and workforce absorption to production output and any obstacles you’re facing. It’s an ongoing compliance requirement tied directly to your business license.
Who is Required to Submit the LKPM?
Under the latest regulations, every business entity that holds a Business Identification Number (NIB) is required to submit an LKPM with only a narrow set of exceptions.
Under current risk‑based‑licensing rules (PP 28/2025 and BKPM Reg. 5/2021), you do not need to file if your business falls into one of these categories:
- Micro enterprises (capital ≤ IDR 1 billion excluding land/buildings, or sales ≤ IDR 2 billion annually).
- Businesses financed by State Budget (APBN) or Regional Budget (APBD).
In 2025, upstream oil and gas businesses and financial institutions (which were previously fully exempt) are now brought under a broader monitoring framework. If your company operates in these sectors, check with a legal advisor to confirm your current obligations.
For everyone else, if you have a NIB and your investment exceeds IDR 1 billion, you must file. This applies to both domestic companies (PT PMDN) and foreign-owned companies (PT PMA).
How Often Do You Need to Submit the Reports?
The frequency of your LKPM submission depends on your business scale, which the OSS system determines based on your investment value (excluding land and buildings):
| Business Scale | Investment Value | Reporting Frequency |
|---|---|---|
| Small (UMK Kecil) | IDR 1 billion – IDR 5 billion | Every 6 months (semester) |
| Medium | IDR 5 billion – IDR 10 billion | Every 3 months (quarterly) |
| Large | Above IDR 10 billion | Every 3 months (quarterly) |
All foreign-owned companies (PT PMA) are categorized as large-scale businesses regardless of investment value, so they always file quarterly.
What Information Must the LKPM Include?
The content of your LKPM varies slightly by business scale, but at a minimum it must cover the following:
1. Investment Realization
This is the core of your report. You must declare the actual capital you’ve deployed during the reporting period, broken down into:
- Fixed capital (Modal Tetap): Equipment purchases, machinery, office furniture, building renovations, and other long-term assets
- Working capital (Modal Kerja): Operational expenses such as salaries, utility bills, marketing costs, and rent
Report figures based on original acquisition values and not market or depreciated values. You also need to report your investment status, whether they are in preparation, operational/trading, or production stage.
2. Workforce Data
Declare the number of employees in your business, split by gender (male/female) and citizenship (Indonesian/foreign workers). You need to report:
- Total workforce before the reporting period
- Additional workers hired during the reporting period
- Workers who left during the reporting period
- Total workforce at the end of the period
Note: you only report changes per period, not resubmit your full headcount from scratch each time.
3. Production of Goods or Services
This section is only required for Semester 2 reports (July–December). You must declare:
- Type of goods or services produced
- Production capacity and actual realization
- Export percentage (if applicable)
- Total export value in US dollars per year (if applicable)
If production realization is zero, leave the export fields blank. The system will not allow you to fill them.
4. Problems Faced
This is an often-overlooked section, but it matters. You are required to report any obstacles your business is encountering, including regulatory issues, licensing delays, labor shortages, or infrastructure problems. Select the relevant problem category, add detail, and provide a chronological explanation. These reports go directly to the verifying authority (DPMPTSP)/Local regional investment office for review.
5. Person-in-Charge (Penanggung Jawab)
You must identify the officer responsible for this LKPM submission, including their full name, phone number, position/title, and email address.
LKPM Report Submission Deadlines
Under BKPM Regulation No. 5 of 2025, the submission deadline has been extended from the 10th to the 15th of the relevant month, giving businesses a few extra days to prepare.
| Type of Business | Reporting Period | Deadline |
|---|---|---|
| Medium to large businesses | Q1 (January – March) | 15 April |
| Q2 (April – June) | 15 July | |
| Q3 (July – September) | 15 October | |
| Q4 (October – December) | 15 January | |
| Small businesses | Semester 1 (January – June) | 15 July |
| Semester 2 (July – December) | 15 January |
Consequences of Not Submitting the LKPM
BKPM Regulation No. 5 of 2025 introduced stronger compliance monitoring alongside the deadline extension. Failing to submit your LKPM or repeatedly submitting with zero realization without explanation carries serious administrative consequences.
The progressive penalty framework:
- First, second, and third warning letters issued by the Ministry of Investment or DPMPTSP
- Temporary suspension of business activities if warnings are ignored
- Administrative fines alongside suspension in some cases
- Permanent revocation of the Business License (NIB) for continued non-compliance
If your NIB is revoked, you lose access to the entire OSS system. You can no longer process work permits or visas, file tax reports through OSS, obtain import approvals, or extend any other government permits tied to OSS. Keep in mind that restoring access after revocation is significantly more complex than maintaining compliance. Therefore, it is strongly recommended to submit your LKPM reports on time, every time.
LKPM Submission Through the OSS
All LKPM submissions go through the OSS (Online Single Submission) system at oss.go.id. You need to ensure the figures you enter are accurate, consistent with your previous reports, and aligned with your business license data. Throughout this process, Emerhub’s experts can submit this report on your behalf to ensure information accuracy.
Here’s an overview of what the process involves:
- Selecting the right business activity: If your company has more than one registered business activity or location, each one needs to be reported separately. Selecting the wrong activity (or missing one) means your compliance record is incomplete.
- Filling in investment realization data: accurately declare your fixed capital (Modal Tetap) and working capital (Modal Kerja) for the period, based on original acquisition values. The system carries forward your previous totals automatically, so any past errors compound over time. If there’s zero realization for the period, a written explanation is mandatory.
- Reporting workforce changes, production figures, and any business problems:. Production data (goods/services output and export figures) is only required for Semester 2 reports. Problem reports go directly to the DPMPTSP verifier.
- Submitting and monitoring verification status: Once submitted, your LKPM goes to the local DPMPTSP for review. If they flag issues, you’ll need to respond to their notes and resubmit. Your report is only considered compliant once the status reads “Disetujui” (Approved) and not “Terkirim” (Submitted).
Getting each of these steps right requires a clear understanding of your company’s financials, your OSS data, and Indonesian investment reporting requirements. A mistake in one period can affect every report that follows.
Emerhub’s compliance team handles LKPM submissions on behalf of companies in Indonesia. Whether you’re filing for the first time after incorporation, catching up on missed reports, or managing ongoing quarterly submissions, our team can handle it on your behalf.
Fill out the form below to talk to one of our consultants.
Frequently Asked Questions (FAQs) About How to Submit an LKPM
Micro-scale businesses with an investment value below IDR 1 billion (excluding land and buildings) are exempt from LKPM reporting under the current regulations (PP 28/2025 and BKPM Reg. 5/2021). However, as soon as your investment exceeds that threshold and you’re classified as a small, medium, or large business, the obligation kicks in.
You are still required to submit the LKPM. If there is no realization for the period, leave the realization fields at zero and provide a written explanation in the “Penjelasan Atas Realisasi Penanaman Modal” field. Failure to submit at all (even for inactive periods) can still trigger administrative sanctions.
Under BKPM Regulation No. 5 of 2025 (effective October 2025), the deadline was extended from the 10th to the 15th of the relevant month in each reporting period. For quarterly reporters, this means April 15, July 15, October 15, and January 15. For semester reporters, it’s July 15 and January 15.
You must submit a separate LKPM for each business activity and each location. The OSS system allows you to select multiple activities during the LKPM submission process, so make sure each one is reported individually. Submitting a single bundled report is not sufficient.
Your report status will change to “Perlu Perbaikan” (Needs Correction). You need to log in to OSS, click “UBAH” on the report, review and respond to the verifier’s notes, and resubmit. Your business is not considered compliant until the status shows “Disetujui” (Approved).
A third party such as Emerhub can submit the LKPM on your behalf using your OSS credentials. Just make sure the person in charge details (name, contact, position) reflect your company’s actual authorized officer, not the service provider. Outsourcing the submission is a common approach for businesses that want to ensure accuracy and timeliness without managing the process internally.
