In Indonesia, an LKPM report or Laporan Kegiatan Penanaman Modal is a report that states all of the investment activities of the company. Filling the LKPM report is a must and there are consequences if you as a business owner fail to do that. How often do you need to submit this LKPM report? A company must submit a filled LKPM report (Laporan Kegiatan Penanaman Modal) to the Investment Coordinating Board (BKPM) once per quarter or bi-annually depending on the operations of your company. How do you submit LKPM report? Let’s find out.
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The elements of an LKPM report
All Foreign Investemnt Companies (also known as PT PMA) and all those companies with an investment value of more than ten billion rupiahs (IDR 10 billion) are required to submit their LKPM report. BKPM requires companies to submit LKPM report for each separate business activity. There are a few details that must be included in the LKPM report such as:
- Information from company’s legal documents such as company’s license number and Tax Registration Number (NPWP)
- The number of employees in the company.
- Company’s financial BKPM wants to see how much capital has been used so that you must include a balance sheet (or Statement of Financial Position (SOFP) and profit/loss (or Statement of Profit and Loss (SOPL) report of your company.
Submitting the LKPM report
Although now data submission for the LKPM report is through BKPM’s online licensing system (National Single Window for Investment or known as NSWi), it is still burdensome because lot of details are required in the LKPM report submission such as separate business activities, amount of money business has and how much money has been invested by shareholders.
New businesses filing LKPM report for the first time
Businesses should submit their first LKPM report right after they have been issued Business Identification Number (NIB) through Online Single Submission (OSS) system. If you want to know more about new OSS system, please click here. If business is filling the LKPM report first time, it must first you the company on www.bkpm.go.id to get a login ID (a username) and password. Please remember that all of the registration forms for LKPM are in Indonesian language which can be problematic for some people specially foreign investors who do not really understand Indonesian Language. After getting the username and log in access you can fill your first LKPM report online.
Possible problems in filing LKPM report
One of the main problems in filing LKPM report (Laporan Kegiatan Penanaman Modal) is that new companies often fail to generate their username and password to be able to log in. This could be problematic because there is a deadline for submitting the LKPM report and there is the penalty if the business misses the deadline.
What happens if you fail to submit LKPM report
If you fail to submit LKPM report, BKPM will issue a series of warnings followed by a fine if the LKPM report is still not filed. Warnings are issued as follows:
- First warning letter; If you miss the LKPM report filing deadline, BKPM will issue the first warning letter to the business. Business must submit its LKPM report withing 30 days of issuance of first warning letter.
- Second warning letter; If the business fails to submit its LKPM report within 30 days of the first warning letter, BKPM will issue second written warning letter with a fine.
How MAM Corporate Solutions can help?
MAM Corporate Solutions not only helps business owners especially foreign investor to incorporate companies in Indonesia but also helps them with all legal compliance in Indonesia. Filing the LKPM report (Laporan Kegiatan Penanaman Modal) is one of the support the MAM Corporate Solutions offers to its clients. We take care of the whole process of the LKPM report (Laporan Kegiatan Penanaman Modal) filing from registering username and password to submission of the LKPM report.
Contact MAM Corporate Solutions
If your business needs help with the submission of the LKPM report (Laporan Kegiatan Penanaman Modal) on time, you can contact our experts anytime by clicking here or provide below as much detail about your inquiry as possible to receive the most relevant response.