Practical Guide for Tax Compliance for LKPM Report Submission and Coordination with BKPM
Corporate Secretary Service Indonesia – Tax compliance for LKPM report submission and coordination with BKPM is an important responsibility for every company. Whether you are managing a domestic or foreign investment, these reports ensure your business remains compliant with Indonesia’s investment and tax regulations. This article explains the link between the Investment Activity Report (LKPM) and the Annual Corporate Tax Return and how you can manage both effectively.
Understanding the LKPM Obligation
The Investment Coordinating Board (BKPM) requires all investors operating in Indonesia to submit regular Investment Activity Reports. This reporting requirement is based on Law No. 25 of 2007 on Investment. The LKPM allows the government to monitor business performance and track investment realization.
Every business actor, whether an individual or company, must provide accurate data on investment progress, workforce, and production each quarter. These updates help authorities evaluate how investment commitments are fulfilled and identify issues that need government support.
What the LKPM Report Includes
If your company is already in commercial operation, the LKPM report must include:
- Company identification data.
- Investment realization details.
- Labor usage statistics.
- Production and marketing information.
- Obligations and challenges encountered during operations.
Submitting your LKPM on time demonstrates that your company is transparent and compliant. Delayed or missing reports can result in administrative penalties and even suspension or revocation of your business license by BKPM.
Streamlining the Submission Process
To simplify compliance, LKPM submissions are now completed online through the OSS platform. Before filing, you must:
- Register and obtain a Business Identification Number (NIB) through the OSS portal at oss.go.id.
- Ensure your company’s directors or appointed representatives have access to the LKPM online submission feature provided by BKPM.
Once logged in, you complete the LKPM form, verify investment data, attach financial or supporting documents, and submit through the system. The OSS platform will generate submission proof to confirm compliance.
Connecting LKPM and Tax Reporting
Tax compliance for LKPM report submission and coordination with BKPM also involves preparing accurate corporate tax documentation. Both reports use overlapping data, including financial statements, capital expenditures, and revenues. Coordination between your finance and compliance teams ensures that figures in the LKPM report match those in your Annual Corporate Tax Return (SPT Tahunan Badan).
- Your tax compliance obligations include:
- Preparing annual financial statements.
- Finalizing the Corporate Income Tax (CIT) calculation.
- Submitting the SPT through the Directorate General of Taxes (DGT) online system.
Accurate reporting reduces audit risks and builds investor confidence. Using consistent figures across LKPM and tax returns is a best practice recommended by most corporate secretarial consultants.
Why Professional Support Matters
Preparing LKPM and tax filings can be complex, especially for foreign investors unfamiliar with Indonesian regulations. Experienced corporate secretarial consultants help you manage both investment and tax reporting requirements efficiently. Their services cover:
- Coordinating data between BKPM and tax offices.
- Preparing schedules and document checklists.
- Ensuring accurate translation of financial information into LKPM-compatible formats.
- Avoiding late submission penalties.
Benefits of Proper Coordination
- Timely and accurate reporting offers strong advantages:
- Improved credibility with BKPM and taxation authorities.
- Access to future investment incentives and government programs.
- Reduced compliance risks and administrative burden.
And even if maintaining compliance with LKPM report submission and regularly liaising with BKPM will strengthen your company’s image as a committed actor in its regulatory environment. Your business still wins when financial transparency and investment progress reporting are integrated, you build trust with investors, and regulators can see how effective your lending is.
For reliable management and a dynamic relationship, you can engage a corporate secretarial adviser focused on investment reporting. They have the knowledge to provide long-term stability and reduce your company’s reporting responsibilities. Contact us now on +6221-5020-8090 for customized guidance on tax compliance for LKPM report submission and coordination with BKPM.
