Establishing and operating a business in Indonesia involves more than completing the initial incorporation process. Among the most significant is the submission of the Investment Activity Report (Laporan Kegiatan Penanaman Modal or LKPM).
Submitting the LKPM is a mandatory periodic reporting process administered by the Ministry of Investment Coordinating Board / BKPM through the Online Single Submission (OSS) system. It enables the Government to monitor the progress of investment projects, capital realisation, workforce absorption, production activities, and business performance across Indonesia.
As a key compliance requirement, businesses must submit LKPM within the prescribed reporting period. Failure to do so may result in administrative sanctions, including written warnings, suspension of business activities, financial penalties, or, in severe cases, the revocation of the company’s business permits.
This guide outlines everything businesses need to know about LKPM reporting in Indonesia, including who is required to submit the report, reporting frequencies and deadlines, the information that must be prepared, and the submission process through the OSS system.
Understanding LKPM Reporting for Foreign Investors in Indonesia
Operating a business in Indonesia extends beyond obtaining a Business Identification Number (NIB) and securing the necessary licences. Companies are also expected to meet a range of ongoing corporate compliance obligations, one of the most important being the submission of the Investment Activity Report (Laporan Kegiatan Penanaman Modal or LKPM).
LKPM is a mandatory investment report submitted through Indonesia’s Online Single Submission (OSS) system. It enables the Ministry of Investment and Downstream Industry/BKPM to monitor investment realisation, business progress, workforce absorption, production activities, and operational challenges experienced by businesses operating in Indonesia.
The reporting obligation is regulated under Law No. 25 of 2007 on Investment, together with BKPM Regulation No. 7 of 2018 and BKPM Regulation No. 5 of 2021, which establish the procedures for supervising investment implementation under Indonesia’s risk-based licensing framework.
For the upcoming reporting cycle, businesses should note the following submission period:
Important LKPM Submission Period
| Business Category | Reporting Period | Submission Window |
| PT PMA (Non-UMK) | Quarter II (April–June 2026) | 1–15 July 2026 |
| UMK Businesses | Semester I (January–June 2026) | 1–15 July 2026 |
Foreign-owned companies (PT PMA) are required to submit their Quarter II (April–June 2026) report, while Micro and Small Enterprises (UMK) are required to submit their Semester I (January–June 2026) report during the same reporting window.
Submitting on time is essential to maintaining your company’s compliance status and avoiding administrative sanctions.
Legal Basis for LKPM Reporting
LKPM reporting is governed by several key regulations, including:
- Law No. 25 of 2007 on Investment
- BKPM Regulation No. 7 of 2018 concerning Guidelines and Procedures for Investment Implementation Control
- BKPM Regulation No. 5 of 2021 concerning Supervision of Risk-Based Business Licensing
Together, these regulations establish LKPM as a mandatory compliance obligation for eligible businesses operating in Indonesia.
Who is Required to Submit an LKPM?
In general, every business entity holding an active Business Identification Number (NIB) is required to submit LKPM, subject to several exemptions.
Businesses that are generally required to report include:
- Foreign-Owned Companies (PT PMA)
- Domestic Investment Companies (PT PMDN)
- Medium-sized businesses
- Large-scale businesses
- Companies operating under Indonesia’s OSS system
Businesses Exempt from LKPM
The following entities are generally exempt:
- Micro enterprises with investment capital of IDR 1 billion or below (excluding land and buildings) or annual turnover not exceeding IDR 2 billion
- Businesses funded entirely through the State Budget (APBN) or Regional Budget (APBD)
Companies operating in regulated industries, including upstream oil and gas and certain financial sectors, should review their reporting obligations carefully, as regulatory supervision continues to evolve.
How Often Must LKPM Be Submitted?
The reporting frequency depends on the company’s investment scale under Indonesia’s risk-based licensing system.
| Business Category | Investment Value | Reporting Frequency |
| Small (UMK Kecil) | IDR 1–5 Billion | Every 6 Months (Semester) |
| Medium | IDR 5–10 Billion | Every 3 Months |
| Large | Above IDR 10 Billion | Every 3 Months |
| PT PMA | Any Investment Value | Every 3 Months |
Although reporting frequency varies by business classification, all PT PMA companies are automatically classified as large-scale investors and therefore must submit LKPM quarterly, regardless of investment value.
July 2026 LKPM Reporting Deadline
The Ministry of Investment has confirmed that the reporting period for the current cycle will run from 1 July until 15 July 2026.
This means:
Quarter II Reporting (Non-UMK / PT PMA)
- Reporting period: April–June 2026
- Submission window: 1–15 July 2026
Semester I Reporting (UMK)
- Reporting period: January–June 2026
- Submission window: 1–15 July 2026
Although businesses now have until the 15th day of the reporting month to submit their LKPM, companies are encouraged to prepare their reports early to allow sufficient time for corrections should additional verification be required by the OSS system.
What Information Must Be Included in an LKPM?
Each LKPM provides the Government with an overview of the company’s investment activities during the reporting period.
1. Investment Realisation
Businesses must declare the capital invested during the reporting period, including:
Fixed Capital
- Machinery
- Equipment
- Buildings
- Office furniture
- Production facilities
- Other long-term assets
Working Capital
- Employee salaries
- Utilities
- Rent
- Marketing expenses
- Operational expenditure
Investment values should always be reported based on their original acquisition cost.
2. Workforce Information
Companies are required to report workforce movements during the reporting period, including:
- Indonesian employees
- Foreign employees
- Male and female workforce composition
- New hires
- Employees leaving the company
- Total employees at the end of the reporting period
These figures help the Government monitor employment growth and workforce absorption resulting from investment activities.
3. Production Activities
Depending on the reporting period, businesses may also need to declare:
- Goods or services produced
- Production capacity
- Actual production output
- Export percentage
- Annual export value (USD)
Where production has not yet commenced, businesses should follow the OSS guidance regarding production reporting fields.
4. Business Challenges
Companies are encouraged to disclose any operational obstacles affecting investment implementation, including:
- Licensing issues
- Infrastructure constraints
- Labour shortages
- Supply chain disruptions
- Regulatory challenges
This information assists the Government in identifying investment barriers and improving Indonesia’s business environment.
5. Company Representative
Each submission must identify the individual responsible for the report, including:
- Full name
- Position
- Telephone number
- Email address
What Happens If You Miss the LKPM Deadline?
Failure to submit LKPM within the required reporting period may result in administrative sanctions under Indonesian investment regulations.
Possible consequences include:
- First, second and third written warnings
- Temporary suspension of business activities
- Administrative fines
- Revocation of the Business Identification Number (NIB)
Businesses should also note that late submissions may be rejected and returned by the OSS system, meaning the report is treated as though it has never been submitted. This may trigger administrative sanctions and potentially affect the company’s ability to continue conducting business activities in Indonesia.
Maintaining timely compliance remains the most effective way to avoid unnecessary regulatory issues.
How to Submit LKPM Through OSS
All LKPM reports must be submitted electronically through Indonesia’s Online Single Submission (OSS) platform.
The process generally involves:
- Selecting the correct business activity (KBLI)
- Reporting investment realisation
- Updating workforce information
- Completing production details (where applicable)
- Reporting operational challenges
- Submitting the report for verification
Businesses should continue monitoring the application until the status changes from “Submitted (Terkirim)” to “Approved (Disetujui)”, confirming successful verification by the relevant authority.
Report Your LKPM with Lets Move Indonesia
Preparing an LKPM requires more than simply completing an online form. Businesses must ensure that investment figures, workforce information, production data, and OSS records remain accurate, consistent, and fully compliant with Indonesia’s investment regulations.
At Lets Move Indonesia, a subsidiary of LMI Consultancy, our corporate compliance specialists assist foreign investors and Indonesian businesses with:
- LKPM reporting
- OSS compliance support
- PT PMA corporate compliance
- Investment reporting reviews
- Ongoing regulatory compliance support
Contact Lets Move Indonesia today to ensure your LKPM is filed on time, your OSS records remain compliant, and your business continues operating smoothly under Indonesia’s investment regulations.
