Guide to Capital Investment Activity Report (LKPM) Obligations
The Capital Investment Activity Report (LKPM) is a mandatory periodic report detailing real investment realizations, manpower usage, and any operational challenges faced by businesses. Submission of the LKPM is strictly regulated by the Ministry of Investment (BKPM) to monitor investment development in Indonesia.
"Under current BKPM regulations, all business scales (small, medium, and large) must submit periodic LKPM reports via the OSS RBA portal. Failure to submit LKPMs can lead to strict administrative warnings, operational suspensions, or permanent business license revocations."
1. Reporting Schedule by Business Scale
Submission deadlines are categorized by your company's paid-up capital:
- Small Scale (Paid-up capital > IDR 1B up to IDR 5B): Obligated to submit LKPM semi-annually (Semester I and II).
- Medium & Large Scale (Paid-up capital > IDR 5B): Obligated to submit LKPM quarterly (Q1, Q2, Q3, and Q4).
2. Penalties for Non-Compliance
The Ministry of Investment enforces compliance strictly using a three-tier warning structure:
- Written Warnings: Issued up to three times consecutively if deadlines are missed.
- Operational Suspension: Temporary freeze on commercial operating rights.
- License Revocation: Permanent cancellation of the company's NIB and permits.
Conclusion
Keeping clean, regular LKPM reports protects your business standing in Indonesia. Contact Jakarta Legal ID's corporate compliance division for assistance with LKPM filing.