Submitting LKPM is the obligation of the business actor that must be carried out periodically by every business actor. This report contains the progress of investment realization as well as matters faced by the business actors. Therefore, the business principal who does not report LKPM will be subject to administrative sanctions in the form of written warnings that are carried out 3 (three) times in a row (Article 55 paragraph (2) PerBKPM 5/2021 in conjunction with Article 56 paragraph (1) PerBKPM 5/2021).
When is the Right Time to Report to LKPM?
LKPM has its own submission time rules as stipulated in the provisions of Article 32 paragraph (4) PerBKPM 5/2021:
- For small businesses, reports are made every 6 (six) months in 1 (one) reporting year;
- For medium and large Businesses, reports are made every 3 (three) months or quarterly.
It is necessary to pay attention to the following LKPM period dates so that you are not late in reporting LKPM:
- The first-quarter report is submitted no later than April 10 of the current year;
- The second-quarter report is submitted no later than the 10th of July of the current year;
- The third-quarter report is submitted no later than the 10th of October of the current year;
- The fourth-quarter report is submitted no later than the 10th of January of the following year.
What are the Consequences if You are Late in Reporting to LKPM?
Since the issuance of Circular Number: 48/A.9/B.1/2022, business actors who are delayed in reporting LKPM will be returned their reports. As a result, the business actors may be subject to administrative sanctions in the form of a written warning.
Verification and Evaluation
After reporting to the OSS system, LKPM will then be verified and evaluated according to the suitability of the report. Therefore, the business actor is required to continue to monitor the status of the LKPM that has been submitted so that all forms of requests for improvements to the LKPM can be responded to and resolved immediately.
There are 4 LKPM statuses that need to be considered by business actors, namely:
- Draft, meaning that the LKPM has not been sent, and can still be edited;
- Sent, meaning that the LKPM has been sent, and has not been evaluated by the officer;
- Needs Improvement, meaning that LKPM has been evaluated, and there are things that need to be improved;
- Approved, meaning that the LKPM has been evaluated and approved by the officer.
THEN, what are the consequences if the Business Actor does not make improvements to the LKPM with the status “Needs Improvement”?
To answer this, it is necessary to refer to the provisions of Article 35 paragraph (3) PerBKPM 5/2021 which states: “In the event that the Business actor does not make improvements to the LKPM as referred to in paragraph (2), the Businessmen is considered not to have submitted the LKPM.”