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The Investment Activity Report (LKPM)

The LKPM Report or The Investment Activity Report or The Investment Online Report in Indonesia

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 about LKPM. In Indonesia, when you set up a company you need to report LKPM to government periodically.

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.


Why All Companies in Indonesia Have Submitted The Investment Activity Report to The BKPM?

According to BKPM Regulation No.7/2018 Article 5, all companies in Indonesia have to submit to investment Activity report providing their investment in Indonesia.

The investor has obligation to send the LKPM report to the BKPM ‘Badan Koordinasi Penanaman Modal (Investment Coordinating Board in Indonesia) according to Article 15 of Indonesian Investment Activity and Article 11 (1) of the BKPM Regulation No.14/2017.

In addition, the investor who failed to fulfill this obligation cannot apply for particular licenses. According to article 35 (6) paragraph 4 of the BKPM Regulation No.13/2017, the receipt of the LKPM report submission is one of the requirements to apply for operational licenses and permanent business permits.

When do You Need to Submit The LKPM Report?

In accordance with the BKPM Regulation No.14/2017 article 11 (3).

1. The companies without a business license or IUT, the company has on the construction phase.

Within this conditional, the investor must send the LKPM report every 3 months. The investor needs to send LKPM report quarterly, like the following:

A. January – March period, LKPM must be submitted by April 10th of the same year.
B. April – June period, LKPM must be submitted by July 10th of the same year.
C. July – September period, LKPM must be submitted by October 10th of the same year.
D. October – December period, LKPM must be submitted by January 10th of the following year.

2. The companies with a business license, the company has on the production phase

If the company have a business license, the company only needs to send the LKPM report twice year. The investor needs to send LKPM report per semester, like the following:

A. LKPM Report for Semester I (January – June) must be submitted by July 10th of the same year.
B. LKPM Report for Semester II (July – December) must be submitted by January 10th of the following year.

What Data do You Need to Prepare for Reporting The LKPM Report?

The LKPM report of a limited obligation company consists of the following:

1. The financial statement of your company basic on the balance sheet and the Profit or Loss report,
2. The list data of your employees especially detail the total WNI (Warga Negara Indonesia) or citizen of Indonesia and WNA (Warga Negara Asing) or foreign citizen,
3. The list data and copies file legal of your company-owned.

Indo-Ned Consultancy Can Assist and Guiding You for Your LKPM Report so You Can Focus on Your Business Core Activity

LKPM report is one of the company’s most important obligations. Therefore, you have an overview of our explanation above that will make it easier for you to understand further. Actually, the LKPM report is not as complicated as you think, because Indo-Ned Consultation will assist you to complete your LKPM report. Do not hesitate, our staff will be ready to work with you. We will direct you to fulfill your business obligations with applicable regulations in Indonesia. Furthermore, Indo-Ned Consultancy always gives the best advice and solutions for your business in Indonesia. Above all, guiding our partner properly is our goal. Hence, if you need assistance and more information feel free to contact us anytime.

Disclaimer:

Important to realize that the information provided here is based on our long experience. In addition, the process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. In that case, please contact us as your consultant to get an up to date information and accurate advice. For furthermore information click here . At the same time, you can also follow our social media accounts to see the latest information posts. Therefore, please click on the following links: FacebookInstagramLinkedin, and Twitter.

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