Home News Client Alert: Mandatory to Submit Investment Activity Report (LKPM)

Client Alert: Mandatory to Submit Investment Activity Report (LKPM)

Investment Activity Report or known as Laporan Kegiatan Penanaman Modal (LKPM) is a mandatory report for every foreign investment company (PMA) or a local investment company (PMDN) with more than IDR 500,000,000 (five hundred million Rupiah) of issued and paid-up capital.

The Indonesian Investment Coordinating Board or known as the BKPM, is expecting for both of the company mentioned above to make the report once per quarter related to the investment realization made by the company, the aim is for the BKPM to monitor and assess the market circumstance.

A company must submit LKPM upon the issuance of their business identification number (NIB) and their business license from the online single submission system (OSS), and the company needs to submit it by the 10th day of the following period:

  1. period of January – March, at the latest 10th  April of the current month (Q1);
  2. period of April – June, at the latest 10th  July of the current month (Q2);
  3. period of July – September, at the latest 10th October of the current month (Q3); and
  4. period of October – December at the latest 10th January on the next year (Q4).

The documents that the company needs to prepare related to the report are as follows:

  • Financial report for the reporting period to see the use of capital of the company.
  • Employee matters such as an increase or decrease in employment.
  • Licenses owned by the company.

Failure to submit your LKPM report may result in a serious administrative sanction. In most cases, BKPM will issue a notification to a company that has not filed the report on the above deadline, after a warning letter may be followed with freezing of the company business license.

If you have difficulties to submit your LKPM report, we can help you to prepare and submit it for you, contact us at hibra@hibraconsulting.com, we will help you to solve the issue.

Thank you.

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