Laporan Kegiatan Penanaman Modal (LKPM) stands for the Investment Activity Report in Indonesia. Investment Coordinating Board (BKPM) expects to receive a report about your company’s investments once per quarter or bi-annually depending on the operational status of your company.
LKPM reporting is required for companies investing more than IDR 10 billion, which means for all PT PMA and 100% Indonesian companies reaching that investment value.
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Report your Company’s Investments Quarterly
BKPM requires submission of a quarterly investment activity report for each line of business or project location from both local and foreign-owned companies in Indonesia. Hence, all entities that are registered in the OSS system must submit the report.
It is mandatory to report your activities periodically so that BKPM can monitor and assess market circumstances.
If you’d like to know more about how processing data goes in the OSS system, read our Always Up-to-Date Guide in English or Agar Pengurusan OSS Anda Tidak Tertolak, Ini Tipsnya! In Indonesian.
How to Submit the LKPM Report?
Data submission for the LKPM report takes place online via the BKPM’s online licensing system National Single Window for Investment (NSWi). When filling the report, list your business activities separately and point out how much money the company and its shareholders have invested.
You should submit your first LKPM report as soon as the NIB has been issued by the OSS system. Make sure to comply with the deadline and submit your LKPM report online by the 10th of the following period:
Emerhub can submit the quarterly LKPM report entirely on your behalf. Get in touch with our consultants in Bali or Jakarta.
Common Troubles with Online Reporting
BKPM is issuing login details for companies so that you may enter your investment data into the NSWi system. In fact, some businesses have these logins from the past! Although, it happens frequently that new companies fail to receive their login data after the NIB notification. We can also assist you if you did not receive the NSWi logins.
Investment Requirements for Local and Foreign-owned Companies
The LKPM reporting is required for companies investing more than IDR 10 billion, which means for all PT PMA and 100% Indonesian companies reaching that investment value.
LKPM report of a limited liability company consists of the following:
- The financial report to see how much capital has been used (balance sheet, profit/loss report)
- The total number of employees
- The company’s legal documents (business license Izin Usaha, NIB, etc.)
What if You Fail to Report your Investment Activity?
Failure to submit your LKPM report may result in serious administrative sanctions. In most cases, BKPM will issue a notification to a company that has not filed the report on time. Then a warning letter, which may be followed by a fine.
How can Emerhub help you?
Contact us as soon as you realize you’ve been late with your LKPM report:
- First warning letter – you will receive a written warning after having missed the LKPM submission deadline.
- Act within 30 days – Emerhub can help you, reach out to us as soon as you’ve received the warning letter. Our legal team must act within 30 days from when you received the note and submit the LKPM report on your behalf.
- Second warning letter – No response leads to a second written warning letter and a fine.
When conducting business in Indonesia, keep your compliance in line with the latest local regulations from the very beginning. If you find it hard to keep track of the laws on your own, ask assistance from Emerhub’s experts by filling the form below.