Investment Activity Report Submission to BKPM in Indonesia: Step-by-Step Guide for PT PMA
Corporate Secretary Service Indonesia – Filling the Investment Activity Report to BKPM in Indonesia is a crucial obligation for foreign direct investment (PMA) companies. The LKPM (Laporan Kegiatan Penanaman Modal) or Investment Activity Report should be submitted periodically as a form of government consulting on the development of investment realization and various issues in the investment sector. The report assists the government to supervise and assess implementation of investment activities throughout the country. Here’s everything you need to know about how to submit your investment activity report to BKPM in Indonesia.
Who Needs to Submit the LKPM?
Investment activity report submission to BKPM in Indonesia applies to businesses with an OSS (Online Single Submission) business license. Both domestic and foreign investment companies, including PMA, must submit this report once they begin construction, production, or commercial operations. However, micro-enterprises with an investment value of less than IDR 50 million and certain sectors like upstream oil and gas, banking, and insurance are exempt from reporting.
When Should You Submit the LKPM?
In Indonesia, the submission of investment activity report to BKPM is based on the investment value, as follows:
For the investments with IDR 50 million to IDR 500 million: submit every 6 months (semi-annually).
- Investment below IDR 500 million: Submit every 6 months.
- Investments of IDR 500 million – IDR 10 billion: Submit every 3 months (quarterly).
- Investment above IDR 10 billion: To be submitted every 3 months (quarterly).
These deadlines are strictly enforced:
- First Semester: Due by July 10.
- Second Semester: Due by January 10 of the following year.
- Quarterly Reports:
- Quarter 1: Due by April 10.
- Quarter 2: Due by July 10.
- Quarter 3: Due by October 10.
- Quarter 4: Due by January 10 of the following year.
Where Do You Submit the LKPM?
The investment activity report submission to BKPM in Indonesia should be made through the OSS system. Additionally, companies in certain regions may also submit to the Investment and One-Stop Integrated Service Office (DPMPTSP) at the provincial or district level if local reporting is required.
Read Also: Legal Agreement Service for Businesses in Indonesia, Why it’s Essential?
What Documents Are Required for LKPM Reporting?
To ensure your LKPM is complete, you must submit several documents:
- Business License and Location Permit
- Financial Statement (if available)
- Investment Realization Details: Include information about the investment value, capital use, and procurement of assets.
- Operational Supporting Documents: Such as work contracts, project progress reports, and any other relevant documents.
Steps to Submit the LKPM
- Register on the OSS System: You need to have an OSS account to access the LKPM submission feature.
- Complete the LKPM Form: Fill in details about your company’s identity, investment realization, and any challenges faced during the reporting period.
- Upload Supporting Documents: Attach required documents such as business permits, financial reports, and any other supporting documents requested by the OSS system.
- Submit the LKPM: After verification, submit your report. You will receive proof of submission.
- Follow Up: If any issues arise or corrections are needed, the government will notify you via the OSS system, and you must act promptly to resolve them.
What Are the Sanctions for Not Submitting the LKPM?
Failure to submit the LKPM or submitting incorrect or incomplete reports can result in administrative sanctions, including:
- Written warnings
- Business activity restrictions
- Suspension or temporary shutdown
- Revocation of licenses
- Fines
Why You Should Consider Using a Procurator for LKPM Reporting
Hiring a procurator (consultant) can be a way to have LKPM reporting not only comply with regulations but also as a complete solution for several technical matters, especially in terms of the OSS system. There are various benefits of going through a procurator such as:
- Regulatory Compliance: Your reports will comply with every requirement as no one wants to go home with their pockets empty by paying the penalty.
- Efficiency: Each of these benefits offers a level of efficiency because it allows your core business to function independently in the area of reporting, providing you with time to focus on your work while the consultant takes care of actually reporting.
- Technical Support: Assists you with solutions to the problems and issues you are experiencing throughout the process.
One of the forms that must be submitted regarding investment activity reports to BKPM in Indonesia is an investment activity report, which is one of the key features that goes hand in hand with the continuity of PMA company operations. You encourage investment tracking in Indonesia, and avoid penalties. You comply with the rules and reporting deadlines. Get help: Hire experts to keep your reports accurate and on time.
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