LKPM Reporting
If you are a foreigner running a business in Indonesia, one of your obligations is submitting a quarterly LKPM (Laporan Kegiatan Penanaman Modal). A LKPM is a comprehensive report that provides valuable insights into your business activities, including both those in the developmental stages, as well as those already in production or commercial operation.
Once completed, the LKPM should provide an overview of the realization of labour and production (including export value) in your business, as well as how you are meeting partnership and other investment obligations. The purpose of the LKPM is not only to offer a periodic snapshot of your company's investment activity but also to foster effective communication between the Indonesian Investment Coordinating Board (Badan Koordinasi Penananman Modal - BKPM) and businesses.
LKPM Reporting
Submitting Your Report:
LKPMs are submitted online in the OSS system, but not meeting the deadlines can result in some pretty hefty consequences. If you’re struggling with the application or having difficulties finding the time to submit it, we are ready to help make the process seamless and easy so you can avoid any potential future issues. You don’t have to be set up or registered by Bali Solve to benefit as we are also able to assist you if you have an independent PT and need help filing your report.
Submission Deadlines:
The LKPM report is submitted every quarter, with specific deadlines as follows:
Quarter I: 1-10 January
Quarter II: 1-10 April
Quarter III: 1-10 July
Quarter IV: 1-10 October
Documentation plays a vital role in the reporting process. We require financial statements in the form of profit and loss reports for the three months preceding the LKPM reporting period. For example, the January LKPM Report would require financial statements from October, November and December. In cases where the LKPM wasn't reported for certain periods, we'll need financial statements from your company's bank account. LKPM reporting is compulsory, even if your firm has only just started up operations or is in the pre-production phase.
Missing the Deadline:
If you have already missed the deadline for submission, we strongly recommend you reach out to us as soon as possible so that we can help you to do damage control and minimize the consequences of not filing. Usually, the cost of seeking professional help is less than the potential repercussions.
As mentioned, filing the LKPM Report is more than just good practice; it's an obligation.
It's important to note that failing to report LKPM for two consecutive periods may result in administrative sanctions, which can range from written warnings to temporary suspension of business activities or even revocation of business licenses.
Approval and Response Time:
After you submit your report, it usually takes 1-3 working days to approve. Don't worry, we'll let you know as soon as we have received and approved your LKPM report.
If you get a warning email after submitting your LKPM report, be sure to double check the status of your report. If it has already been approved, you can ignore the email. However, if some improvements are still needed, it will be necessary to address the issues and submit an updated LKPM report in the subsequent period.
