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LKPM (Investment Activity) Report

LKPM (Investment Activity) Report

What is LKPM?

Following Regulation of BKPM Number 5 of 2021 on Guidelines and Procedures for The Supervision of Risk-Based Business Licenses (“RB 5/2021”), LKPM is a report on investment realization’s development and problems faced by business actors which submitted periodically.

Nevertheless, LKPM has except the company that conducts business activity in the financial service, insurance, banking, and oil gas sector. Those business sectors had specific regulations on the periodic report under its authorized institution. 

Which Companies Should Submit LKPM?

The following business subjects are required to submit LKPM to BKPM:

  • Any business subjects with investment value of more than IDR 50 million (Cv, Firma, UD, Foundation) and have business identification numbers (Nomor Induk Berusaha – NIB)
  • Local PT
  • PT. PMA
  • Foreign Company Representative Offices
  • Foreign Trading Company Representatives
  • Foreign Construction Service Enterprise Representative Offices
  • Foreign Oil-and-Gas Representative Offices

LKPM Reporting Period for Companies in Indonesia

Businesses with investment value of between IDR 50 million and IDR 500 million (referred to as “Investment Value I”) are required to submit the investment activity report every six months (semesterly). Deadlines are as follows:

  • Semester I deadline: 10 July
  • Semester II deadline: 10 January

Businesses with investment value of between IDR 500 million and IDR 10 billion (“Investment Value II”) and more than IDR 10 billion (“Investment Value III”) are required to submit the investment activity report every three months (quarterly). Details are as follows:

PeriodDate
Quarter IJanuary – March1 – 10 April current year
Quarter IIApril – June1 – 10 July current year
Quarter IIIJuly – September1 – 10 October current year
Quarter IVOctober – December1 – 10 January next year

Furthermore, businesses with Investment Value I should take note of the following:

  • Parties that are issued business licenses during the first five months of a semester are required to submit LKPM for the first time during the semester in which the business license is issued;
  • Parties that are issued business licenses during the sixth month of a semester are required to submit LKPM for the first time during the following semester from the one in which the business license is issued.

Businesses with Investment Value II and Investment Value III should jot down these points:

  • Parties that are issued business licenses during the first two months of a quarterly period are required to submit LKPM for the first time during the quarterly period in which the business license is issued;
  • Parties that are issued business licenses during the third month of a quarterly period are required to submit LKPM for the first time during the following quarter from the one in which the business license is issued.

LKPM Reporting Procedure to BKPM

  • Instead of utilising the Electronic Investment Information and Licensing Services (SPIPISE) system, as previously required under Regulation 7/2018, the submission of LKPM should now be completed via the OSS system.
  • In order to submit an LKPM, a business must first secure access rights to the OSS system, which are granted when registering for a NIB.
  • Verifications and evaluations of investment realization data input into the LKPM should now to be completed via the OSS system.

Sanction

Administrative sanctions can be imposed on a business actor that does not deliver LKPM to BKPM in accordance with the periodic above. The administrative sanctions are as follow:

  1. First, Second, and Third warning letter if not deliver the LKPM for 2 (two) consecutive reporting period and/or do not report the LKPM for the first time without any additional investment realization for 4 (four) consecutive reporting period with 0 (zero) realization value;
  2. First and Last written caution;
  3. Temporary Suspension of Business Activity; and/or
  4. Revocation of Business License.

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