Business Entities that are Obligated to Submit Investment Activity Report (LKPM)

LKPM is a report on the progress of investment realization and problems faced by business actors. This report must be prepared and submitted periodically. This obligation is regulated in Article 15 letter c of Law no. 25 of 2007 concerning Investment and then regulated in detail through BKPM Regulation No 5 of 2021 concerning Guidelines and Procedures for Supervision of Risk-Based Business Licensing. (BKPM Regulation 5/2021)

A. Business Entities that are Obligated to Submit LKPM

Article 5 of BKPM Regulation 5/2021 stipulates that every business actor is required to submit an LKPM. This means that every business entity, whether a legal entity or not, with the status of Domestic Investment (PMDN) and Foreign Investment (PMA) is required to submit LKPM

However, Article 32 (5) of the BKPM Regulation 5/2021 regulates exceptions to the obligation to submit LKPM. For business actors with a capital of less than IDR 100 million (micro-scale business entities) and in the upstream oil and gas, banking, non-bank financial institutions, and insurance business sectors are not required to submit LKPM.

B. What to Report in LKPM

Article 29 paragraph (4) explains that the material submitted through LKPM consists of reports on the following matters:

Investment Realization;
Workforce realization;
Production realization, including export value;
Partnership obligations; and
Other obligations related to the implementation of Investment.

Every Business Actor is expected to comply with the provisions regarding the obligation to submit this LKPM in order to avoid unwanted sanctions. If you need assistance in submitting LKPM, you can contact our service.