What You Need to Know about LKPM and Investment Reporting

If your company operates in Indonesia and involves foreign or domestic investment, you are required to submit the LKPM (Laporan KegiatanPenanaman Modal) or Investment Activity Report, periodically. This report is a crucial part of compliance with Indonesia’s investment regulations and helps the government monitor your company’s investment activities, capital realization, employment, and operational progress.

What is LPKM?

LKPM is a mandatory report for all companies with investments activities in Indonesia, submitted to the BKPM (Indonesia Investment Coordinating Board) and local investment offices. The report provides detailed information about your investment activities, including the amount of capital invested, number of employees, production output, and any challenges faced during the reporting period.

LPKM Reporting Periods and Deadlines

The reporting frequency is determined by the company’s classification:

1. Small Scale companies:

- Semester 1: January – June submitted by April 10

- Semester 2: July – December submitted January 10 of the following year

2. Medium and Large Scale Companies:

- Quarter 1: January – March submitted April 10

- Quarter 2: April – June submitted July 10

- Quarter 3: July – September submitted October 10

- Quarter 4: October – December January 10 of the following year

Staying on top of your LKPM reporting is not just about compliance it also reflects your company’s commitment to transparency and operational accountability in Indonesia.

Why Is Timely LPKM Reporting Important?

Failure to submit LPKM reports on time can trigger administrative sanctions, including:

• Written warnings

• Fines and penalties

• Suspension of business activities

• Potential revocation of business licenses

Beyond compliance, timely reporting strengthens your company’s reputation and builds trust with Indonesian regulators an advantage for securing future approvals and supporting business growth.

If you need more info and further assistance please contact us at: info@panduconsultancy.com