Introduction
Indonesia’s LKPM reporting (Laporan Kegiatan Penanaman Modal) is one of the most important compliance obligations for companies in Indonesia, particularly for Foreign Investment Companies (PT PMA – Perseroan Terbatas Penanaman Modal Asing). Every company is required to submit this report to ensure investment activities are aligned with their business licenses.
Since investment administration is centralized under the Ministry of Investment/BKPM, LKPM obligations are now emphasized as a monitoring tool for the government to track investment implementation. Companies must report investment realization, employment data, and operational progress through the OSS (Online Single Submission) system.
Why this matters?
- Without accurate and timely LKPM reports, companies may face administrative sanctions, fines, or even license revocation.
- LKPM data is also used by the government to assess company credibility, including when applying for new or expanded licenses.
- Compliance with LKPM builds trust with investors, shareholders, and business partners by demonstrating transparency.
👉 Related Service: Learn more about Company Formation (PT PMA) with MAM Corporate Solutions to ensure compliance from the very beginning.
What is LKPM Reporting in Indonesia?
LKPM (Laporan Kegiatan Penanaman Modal) is a mandatory investment activity report that must be submitted periodically by all companies holding a Business Identification Number (NIB).
Its purpose is to provide the government with a clear picture of how investment plans are being implemented. LKPM functions as a monitoring tool to ensure that:
- Companies are implementing the approved investment plan.
- Companies comply with licenses and operational permits issued through the OSS system.
- Employment data (both local and foreign workers) is reported transparently, including BPJS registrations.
- Companies disclose production, sales, export, and import data accurately.
Companies report investment realization, including spending on land, buildings, machinery, and working capital.
👉 Why this matters for PT PMA: LKPM reports serve as the basis for evaluating whether a PT PMA can expand its business or even retain its license. Non-compliance may result in rejected license applications or restrictions on operations.
Legal Framework for LKPM Reporting in Indonesia
LKPM reporting has a strong legal foundation to ensure both local companies and PT PMAs fulfill their investment obligations. Key regulations include:
Establishes the obligation for companies to regularly report investment realization.
Outlines the procedures, deadlines, and sanctions related to LKPM submissions.
The official digital platform for LKPM reporting.
Why this matters?
Failure to comply can result in penalties, rejection of new permits, suspension of licenses, or reputational risks with investors.
How LKPM Reporting Operates in Indonesia
Companies in the construction stage must submit LKPM reports quarterly:
- January – March
- April – June
- July – September
- October – December
These reports should include capital expenditure, land acquisition, building construction, and equipment installation
Companies in the operational stage must submit LKPM reports semi-annually:
- January – June
- July – December
Reports must cover:
- Company Identification – NIB, licenses, and legal documents.
- Investment Realization – capital inflows, machinery purchases, and asset details.
- Employment Data – local and foreign employees, including BPJS registration.
- Production & Operations – production volume, milestones, and performance.
- Financial Data – sales, exports, imports, and other key metrics.
⚠️ Why this matters: Inconsistencies between LKPM and tax filings may trigger audits.
👉 Related Service: Ensure compliance with Tax Compliance Services from MAM Corporate Solutions.
Common Mistakes in LKPM Reporting in Indonesia
A PT PMA in Central Java failed to submit LKPM reports for two consecutive quarters, and its reported employee numbers didn’t match BPJS records.
- Consequences: Received a BKPM warning letter; expansion permit delayed.
- Solution: Hired compliance experts to correct submissions, align BPJS data, and avoid penalties.
📌 Lesson: Consistency across LKPM, tax, and HR compliance protects business continuity.
Key Takeaways for Businesses
✅ LKPM reporting is mandatory for all companies, especially PT PMA.
✅ Common mistakes include late submission, inconsistent data, and missing details.
✅ Align LKPM with tax and labor compliance to strengthen credibility.
✅ Real case studies prove negligence directly impacts licenses and investor trust.
Key Actions for Organizations
- Create a compliance calendar with strict deadlines.
- Align LKPM with tax and payroll reports.
- Assign responsibility to compliance/finance teams.
- Stay updated with OSS and BKPM regulations.
- Engage consultants like MAM Corporate Solutions for review and submission.
FAQ on LKPM Reporting in Indonesia
All companies with a valid Business Identification Number (NIB), including PT PMA. Applies at both construction and operational stages.
Sanctions may include warning letters, suspension of licenses, restrictions on permits, or even revocation by BKPM.
- Construction stage: Quarterly.
- Operational stage: Semi-annual
Yes. Companies can revise submissions via OSS with justification and documents.
Investment realization, employment data, operations, and financial performance.
It ensures compliance, protects licenses, and builds investor trust.
How MAM Corporate Solutions Can Support You
LKPM reporting in Indonesia is more than an administrative task — it is a critical compliance requirement shaping a company’s legal standing, reputation, and growth potential.
Avoiding mistakes ensures smooth operations and strengthens credibility with regulators and investors.
Contact MAM Corporate Solutions today or fill in the form below for expert guidance in preparing and submitting LKPM reports in Indonesia.
