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LKPM Registration in Indonesia – Who is it for and what are the benefits
Investment Activity Report (LKPM) is an obligation for every business actor as stipulated in Article 15 letter (c) of Indonesian Law No. 25 of 2007 concerning Capital Investment Article 5 letter (c) and BKPM Regulation No. 5 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Supervision.
LKPM is a report on the progress of Investment realization and problems faced by Business Actors that must be made and submitted periodically (Article 1 point (20) of BKPM Regulation No. 5 of 2021) which are required to submit LKPM online are all Business Actors, except Micro Business Actors, Companies in the upstream oil and gas business sector, banking, non-bank financial institutions and insurance.
Submission of the Investment Activity Report (LKPM) is a requirement for companies investing more than IDR 500,000,000 (approx. USD 33,900). This includes all companies with foreign shareholders as the minimum capital requirement for such is IDR 2,500,000,000. The company must also have an Identification Number to Operate or Nomor Induk Berusaha (NIB).
However, this does not apply to the following:
- Finance companies
- Insurance companies
- Banking companies
- Companies in the oil and gas industry
- Companies with expired operating licenses
New companies also have to submit an investment activity report. Once the Online Single Submission (OSS) System issues the NIB to your company, you will have to start submitting the LKPM.
Common Questions
When should I do LKPM report?
LKPM reports should do periodically, There are 4 quarters for each report.
Quarter 1st : Investment Report from January – March, will be reported in April;
Quarter 2nd : Investment Report from April – June, will be reported in July;
Quarter 3rd : Investment Report July – September, will be reported in October ; and
Quarter 4th : Investment Report October – December, will be reported in January.
What are the most common key points included in the LKPM report?
The most common key points included in the LKPM report are investment, labor, production, partnership as well as other obligations realization and problems faced by business actors
What will happen if I don’t report LKPM for my company?
If a business actor does not report LKPM for their company, they will get administrative sanctions based on Article 47 paragraph (1) BKPM Regulation 5/2021) :
- Written or online warning
- Restriction of Business activities
- Suspension of business activities and or investment facilities
- Revocation of business activities and or investment licenses and or investment facilities
Why should we ask a consultant's help to report LKPM?
You need consultant service to doing this to avoid errors/ mistake in submitting the reports
What kind of business does not have to report LKPM?
If your company has an investment value less than Rp. 1.000.000.000 ( one billion rupiah ) or your company is in non bank financial institutions, insurance, banking a s well as upstream oil and gas sector also if your company has a Principle Permit ( IP- Izin Prinsip), Investment Registration ( PI – Pendaftaran Penanaman Modal) and/or an inactive or expired Business License ( IU- Izin Usaha ) thats means you don’t have obligation to make a LKPM report.
Steps to Report your LKPM with Lets Move Indonesia
- Contact our Tax consultant and make an enquiry audit to report your LKPM
- Prepare the documents needed (refer to the requirements section)
- After confirming all the processes, you can proceed to the payment
- Our tax consultants will execute the report submission. The estimated time will be around 3 working days.
Requirements
You company must prepare all the documents below :
1. Identity and contact details of Company Directors:
2. Copy of Deed of Establishment along with Decree Approval from Ministry (SK)
- For Indonesian individuals, KTP, NPWP, email and phone number.
- For Foreign Individuals, valid passport, email and phone number.
3. Copy of Amendment of Article of Association along with Decree Approval from Ministry (if any)
4. Copy of Tax ID
5. Copy of Business License
6. Copy of Registration Number (NIB)
7. Financial Report for 3 Months
8. OSS Account Access
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