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LKPM Report

Investment Activity Report (LKPM)

What is The Investment Activity Report or The LKPM (Laporan Kegiatan Penanaman Modal)?


When you have a plan to set up a company in Indonesia and start doing business in Indonesia, you need to understand LKPM. In Indonesia, when you set up a company you need to report LKPM to the government periodically. Here glance the information about the LKPM Report in Indonesia.

The LKPM is a periodical report that consists of the data regarding the development of investment realization and the problems faced by the investors. The LKPM report has a function to monitor and evaluate the progress of implementation investments that have received investment permits.

Besides, The Investment Activity Report (LKPM) also has the function as:

1.The progress of investment realization per sector and location regularly.
2.The development of employment.
3.Information on problems faced by investors.
4.One source of information considered in the policy set.

LKPM Benefits:

  • For Investors: Government and company communication facilities, as well as facilitation if there are problems or obstacles faced by the company.
  • For Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal atau BKPM): To obtain data on the Realization of Investment Realization and information on problems or obstacles faced by the company.
  • For the Department of Investment and the One Stop Service (Dinas Penanaman Modal Pelayanan Terpadu Satu Pintu atau DPMPTSP): To find out the Progress of Investment Realization per Province or District or City and information on problems or obstacles faced by the company.

As mentioned above, to be able to report LKPM, the investors need to apply for SPIPISE access. The way is to register through the SPIPISE official website. Complete all the information requested including uploading the Deed of Establishment, Decree from the Ministry of Law and Human Rights, as well as the identity of the person in charge. The person who are in charge of LKPM reporting are directors or company leaders, shareholders, or authorized people. If the person in charge of LKPM reporting is the company’s authorized person, the company must upload a power of attorney document. After the registration file is verified, the investor will get a user identity: user name and password, which will be sent to the email of the person in charge of LKPM.

The investor who failed to fulfill the obligation to report LKPM cannot apply for particular licenses. According to article 35 (6) paragraph 4 of the BKPM Regulation Number 13 Year 2017, the receipt of the LKPM report submission is one of the requirements to apply for operational licenses and permanent business permits. In addition, if the investors do not report the LKPM, the Indonesian Government has an authority to check the company’s activities and has the right to revoke up to freeze the company business license.

Disclaimer:

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.

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