Understanding Your LKPM Report Submission for Foreign Investments in Indonesia
Corporate Secretary Service Indonesia – But when you have foreign investment company in Indonesia, you must understand the reporting obligations. Based on the Government Regulation No.6 of 2020, LKPM or Laporan Kegiatan Penanaman Modal (Investment Activity Report) has to be submitted. This report reports the operational status results of your project. The sanction for not submitting LKPM is quite severe.
These sanctions include business license revocation, registration certificate cancellation, and administrative penalties from the Investment Coordinating Board (BKPM). A proper LKPM report submission for foreign investments in Indonesia is critical for maintaining your company’s good standing.
Who Must Submit the LKPM?
The LKPM obligation applies to a wide range of business entities. As a foreign investor, you need to pay close attention if your company falls into one of these categories.
- Foreign Investment Limited Liability Companies (PT PMA)
- Representative Offices of Foreign Companies
- Representative Offices of Foreign Trading Companies
- Representative Offices of Foreign Construction Services Companies
- Representative Offices of Foreign Oil and Gas Companies
Local companies, including PTs and other entities with an investment over IDR 50 million and a Business Identification Number (NIB), must also report.
Your LKPM Reporting Schedule
Your reporting frequency depends on your total investment value. This determines your deadlines for LKPM report submission for foreign investments in Indonesia.
Companies with an investment between IDR 50 million and IDR 500 million (Investment Value I) submit reports every six months.
- Semester I deadline: July 10
- Semester II deadline: January 10
Companies with an investment between IDR 500 million and IDR 10 billion (Investment Value II), and those over IDR 10 billion (Investment Value III), submit quarterly reports.
- January-March period: submit by April 10
- April-June period: submit by July 10
- July-September period: submit by October 10
- October-December period: submit by January 10 of the next year
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Special rules apply for your first report. If you get your business license in the first five months of a semester (for Value I) or the first two months of a quarter (for Value II/III), you submit your first LKPM in that same period. If you get your license in the sixth month of a semester or the third month of a quarter, your first report is due in the following period.
The LKPM Submission Procedure
The submission process has moved to the Online Single Submission (OSS) system. You no longer use the previous SPIPISE system. To submit your LKPM, you need access to the OSS system. You receive this access when you register for your company’s NIB. You must input and verify all investment realization data directly through the OSS platform.
This process requires accuracy and an understanding of the system. Mistakes in submission or data entry can lead to compliance issues. The regulations are clear, and the authorities enforce the deadlines strictly.
Simplifying Your Compliance
Managing LKPM submissions alongside your core business operations can be a complex task. The changing deadlines and online system require dedicated attention. Many companies find that professional assistance ensures accuracy and timeliness on LKPM report submission for foreign investments in Indonesia.
Our firm specializes in corporate secretarial services, including LKPM compliance. We help local and international clients meet all their corporate obligations. From the quality order data to submission through the OSS system, our client experts handle the entire process for you!
That way, you can have peace of mind and be able to focus on operations instead of worrying about keeping the business afloat. We submit your LKPM report for foreign investments in Indonesia accurately and in a timely manner to mitigate unnecessary business risks. Let our consultants provide you with the best advice for a seamless compliance process.
Portcorp is here as a solution for your business, also when you need LKPM report submission for foreign investments in Indonesia. Portcorp is your comprehensive corporate secretary service in Indonesia. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!
