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What PT PMA Owners Should Know About LKPM (Investment Activity Report)

Many foreign investors who establish a PT PMA in Indonesia do not realize that they have administrative obligations that must be fulfilled regularly. One such obligation that is often overlooked is the Investment Activity Report (LKPM). If you are a PT PMA owner and have never heard of LKPM, then this article is for you.

What is LKPM (Investment Activity Report / Quarter Report)?

LKPM is a periodic report that must be submitted by every company with PMA status to the Investment Coordinating Board (BKPM) or now known as the Indonesian Ministry of Investment. This report contains information on investment realization, production, labor, and obstacles faced by the company in running its business.

Who is Required to Report LKPM?

All PT PMA in Indonesia are required to submit LKPM, both those that are already operating and those that are still in the construction or business preparation stage.

How Often Should LKPM be Reported?

  • Companies with investment value below IDR 50 billion: Report LKPM every three months (quarterly).
  • Companies with investment value above IDR 50 billion: Report LKPM every six months (semesterly).

This reporting is done through the OSS (Online Single Submission) system managed by the Indonesian government.

What are the consequences of not reporting LKPM?

Many foreign investors do not realize that not reporting LKPM can have serious repercussions, including:

  1. Warnings and Administrative Sanctions – BKPM can issue formal warnings to non-compliant companies.
  2. License Suspension – If the report is not submitted for a long time, the business license can be suspended.
  3. Difficulty in Processing Other Licenses – Companies that do not report LKPM may experience obstacles when applying for license changes, license extensions, or business expansion.
  4. Potential Revocation of Business License – In more severe cases, the government may revoke the business license of a company that persistently fails to fulfill its LKPM obligations.

If you have a PT PMA in Indonesia, make sure you don’t neglect your LKPM reporting obligations. This is not just an administrative obligation, but it can also affect the continuity of your business in Indonesia. If you need assistance in the LKPM reporting process, there are many consulting services that can help you stay compliant with the applicable regulations.

Don’t let your business be hampered just because of negligence in fulfilling this obligation! If you have never reported LKPM, you should start now before you get penalized. If you need further assistance, do not hesitate to contact an experienced investment consultant.

Disclaimer

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.

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