The deadline for submitting the Investment Activity Report (LKPM) is 10 July 2022, both for Semester I LKPM for Small Business Actors or Quarter II LKPM for Medium and Large Business Actors. LKPM is a report on the progress of investment realization and problems faced by business actors that must be prepared and submitted periodically (Article 1 number (20) of BKPM Regulation No. 5 of 2021). Submission of LKPM itself is an obligation for investors which is regulated in Law Number 25 of 2007 concerning Investment and clarified in Regulation of the Investment Coordinating Board Number 5 of 2021 concerning Guidelines and Procedures for Supervision of Risk-Based Business Licensing.
In general, LKPM contains a list of permits owned, the realization of company investments, the use of labor, the realization of machinery and equipment, as well as the problems that are being faced by the company. LKPM is a means of communicating problems faced by business actors to the Investment Coordinating Board (BKPM) and local governments. BKPM will evaluate, follow up and facilitate the problems encountered based on the results of the assessment, so that the submission of LKPM is not only limited to fulfilling obligations but also providing benefits to business actors.
Since the presence of a risk-based Online Single Submission (OSS), submission of LKPM can be done online through the https://oss.go.id/ website. Business Actors are required to fulfill the following online reporting requirements:
- Registering a Business Identification Number (NIB) online via https://oss.go.id/
- Fill in project data up to step 8 “Project Output and Business License” for each registered KBLI
- Companies that have filled in project data in OSS 1.0 are required to migrate data in OSS 1.1 to be able to submit LKPM
Online submission of LKPM is mandatory for all business actors except
- Micro business actors;
- Companies in the upstream oil and gas business, banking, non-bank financial institutions, and insurance;
- Companies that have a Principle Licensing (IP), Investment Registration (PI), and/or Business License (IU) that are no longer active or have expired.
The deadline for submission for each scale of the business actor is described in Article 32 paragraph (4) BKPM Regulation No. 5 of 2021 with the following conditions:
Small Business Actors are required to submit LKPM every 6 (six) months in 1 (one) reporting year with the following submission period:
Period | Delivery Time | |
Semester I | January - June | 1 - 10 July current year |
Semester II | July - December | 1 - 10 January next year |
For medium and large business actors, they are required to submit LKPM every 3 (three) months (quarterly) with the following submission period:
Period | Delivery Time | |
Quarter I | January - March | 1 - 10 April current year |
Quarter II | April - June | 1 - 10 July current year |
Quarter III | July - September | 1 - 10 October current year |
Quarter IV | October - December | 1 - 10 January current year |
It is expected that business actors will comply with the conditions for submitting the required LKPM. The ease of submitting LKPM online is expected to increase the number of LKPMs that enter the OSS system. Business Actor’s delay or non-compliance with the submission of LKPM and other documents may be subject to administrative sanctions. Based on BKPM Regulation Number 5 of 2021, BKPM has the right to carry out monitoring, written or online warnings through OSS, until the revocation of the Business Identification Number (NIB).
SW Indonesia has a position as Indonesia’s Investment Gateway, which helps Business Actor to be able to run their business in Indonesia according to the expected plans and expectations, and comply with applicable regulations. SW Indonesia also provides LKPM preparation services to Domestic Investment (PMDN) and Foreign Investment (PMA) companies. Make sure your company fulfills LKPM reporting obligations within the time limit determined by the authorities in Indonesia.
Sonny Tian | sonny.christian@shinewing.id