Did you know that every business actor has an obligation to report his company's Investment Activity Report (LKPM)? If until now you don't know what LKPM is or you already know LKPM but still haven't reported your company's LKPM, we recommend that you read this article to avoid sanctions that will be imposed by the Investment Coordinating Board (BKPM) on your company.
WHAT IS LKPM
Based on Article 1 paragraph 20 of the Regulation of the Investment Coordinating Board Number 5 of 2021 concerning Guidelines and Procedures for Supervision of Risk-Based Business Licensing (BKPM Regulation 5/2021), which states:
Investment Activity Report, hereinafter abbreviated as LKPM, is a report on the progress of Investment realization and problems faced by Business Actors that must be prepared and submitted periodically.
WHO IS REQUIREDED TO REPORT LKPM
Based on Article 15 of Law Number 25 of 2007 concerning Investment, which states:
Every investor is obliged to:
a. apply the principles of good corporate governance;
b. carry out corporate social responsibility;
c. make a report on investment activities and submit it to the Badan Koordinasi Penanaman Modal;
d. respecting the cultural traditions of the community around the location of investment business activities; and
e. comply with all statutory provisions.
So that every investor or individual or business entity that makes investments (domestic investors and foreign investors) is required to report LKPM. However, for micro business actors and upstream oil and gas businesses, banks, non-bank financial institutions and insurance, the obligation to report LKPM is excluded as stated in Article 32 paragraph (5) of BKPM Regulation 5/2021.
WHEN TO REPORT LKPM
For small business actors who are required to report LKPM, as stated in Article 32 paragraph (6) letter a of BKPM Regulation 5/2021, the LKPM report is carried out every 6 months:
– Semester 1 Report: 1st to 10th of July
– Semester 2 Report: 1st to 10th of January
For medium and large business actors who are required to report LKPM, as stated in Article 32 paragraph (7) letter b of BKPM Regulation 5/2021, LKPM reports are carried out every 3 months:
– Quarterly Report I: 1st to 10th of April
– Quarterly Report II: 1st to 10th of July
– Quarterly Report III: 1st to 10th of October
– Quarterly Report IV: 1st to 10th of January
WHAT NEEDS TO REPORT
Based on Article 4 paragraph (4) letter a BKPM Regulation 5/2021, the LKPM report covers investment realization, workforce realization, production realization including export value, partnership obligations and other obligations related to the implementation of Investment submitted by individual business actors, and business entity
WHERE TO REPORT LKPM
Since entering 2022, BKPM has gradually shifted the website page to report LKPM, previously company owners were still able to log in using the LKPM account on the website. lkpmonline.bkpm.go.id, has now been redirected entirely to the OSS website. To make an LKPM report you can access the OSS website here, you must log in using your company's OSS account first, after successfully logging in you can then access LKPM on the Reporting menu.
WHAT ARE THE SANCTIONS FOR NOT REPORTING LKPM
Each company may be subject to sanctions in the form of a first, second, and/or third written warning if it fails to report LKPM, as stated in Article 55 paragraph (1) of BKPM Regulation 5/2021:
Minor violations as referred to in Article 47 paragraph (2) letter a shall be imposed in the event that:
a. Business Owners do the things as referred to in Article 46 paragraph (1);
b. Business Owners not submitting LKPM for 2 (two) consecutive periods;
c. Business Owners submitting LKPM for the first time without any additional realization value investment for 4 (four) consecutive periods with zero realizable value;
d. Business Owners do not realize their business activities in accordance with the estimated time to start production/operation listed in the OSS System;
e. Business Actor does not carry out partnership obligations while carrying out business activities;
or
f. the occurrence of environmental pollution at the business location that does not endanger safety.
Thus the article What You Need to Know About the Investment Activity Report (LKPM), hopefully it can help you.
