The obligation for investors in Indonesia to report their activities has been reaffirmed with the new Regulation of the Minister of Investment/Head of BKPM No. 5 of 2025. This regulation makes the Investment Activity Report, or LKPM, a mandatory requirement for almost every business actor.
This report is a critical tool for the government to monitor investment realization and for businesses to maintain legal compliance. Understanding this obligation is crucial for ensuring your business continuity and avoiding serious sanctions.
Key Takeaways
- Mandatory Obligation: LKPM reporting is a legal requirement under BKPM Regulation No. 5 of 2025 for all investors with a NIB, except for micro-scale businesses.
- Reporting Deadlines: The schedule is strict: quarterly for medium and large enterprises, and semesterly (every six months) for small enterprises.
- Submission Platform: All LKPM reports must be submitted online through the OSS (Online Single Submission) system.
- Severe Sanctions: Failure to report, or reporting no progress for consecutive periods, can lead to progressive sanctions, including written warnings, temporary suspension of business, and permanent revocation of the NIB.
What is an LKPM and why is it mandatory?
An LKPM (Laporan Kegiatan Penanaman Modal) is a periodic report on the progress of investment realization, investment obligations, and any challenges faced by business actors. Its mandatory nature is rooted in Law No. 25 of 2007 on Investment, which requires every investor to submit such reports to the Investment Coordinating Board (BKPM).
This is further enforced by BKPM Regulation No. 5 of 2025, which specifies that LKPM must be submitted online through the Online Single Submission (OSS) system.
Who is required to submit an LKPM?
Every business actor who has obtained a Business Identification Number (NIB) is required to submit an LKPM on investment realization for each business activity and location. This obligation applies to both main and supporting business activities.
The only exemptions from this requirement are granted to micro-scale businesses and business activities that are financed by the state or regional budget (APBN/APBD).
What information must be included in the LKPM?
The LKPM report must provide a comprehensive overview of the investment’s progress and any related activities. The report must cover:
- Realization of investment.
- Realization of manpower.
- Production of goods and/or services.
- Fulfillment of basic requirements, business licenses (PB), and/or supporting business licenses (PB UMKU).
- Fulfillment of investor obligations and responsibilities.
- Constraints or problems encountered by the business.
When is the deadline for LKPM reporting?
The reporting schedule is determined based on the business scale of the investor.
- Small Enterprises: Submit reports twice a year.
- Semester I: no later than July 15.
- Semester II: no later than January 15 of the following year.
- Medium and Large Enterprises: Submit reports four times a year.
- Quarter I: no later than April 15.
- Quarter II: no later than July 15.
- Quarter III: no later than October 15.
- Quarter IV: no later than January 15 of the following year.
What is the procedure for submitting an LKPM?
The submission process is carried out entirely online through the OSS system, which involves several key steps.
- Access the OSS System
Log in to the OSS website (https://oss.go.id) using your username and password.
- Enter LKPM Menu
Navigate to the “REPORTING” section, select “LKPM,” and click “Create Report.”
- Select and Review Data
Check the business data to be reported, including investment plans and previous realization.
- Complete Report Data
Fill in all required data for the current period, such as investment realization, manpower, and any problems faced. Data on production and marketing is typically filled in during the Semester II report.
- Declaration and Submission
Read the statement, check the disclaimer, and click “Send Report.” The report status will change to “Sent.”
- Verification
The report is then examined by the relevant authorities (BKPM, DPMPTSP, etc.). If incomplete, the status will change to “Needs Improvement,” and the business must make corrections.
- Approval
Once the report is verified and correct, the status will change to “Approved,” and the business actor can download the official receipt.
What are the consequences of failing to submit an LKPM?
Failure to submit an LKPM repeatedly will result in progressive administrative sanctions from the government. These sanctions are imposed if a business actor, for example, fails to submit an LKPM for two consecutive periods or reports no additional investment realization during the preparation stage for four consecutive periods.
The sequence of sanctions is as follows:
- Written Warnings: A series of progressive warnings (1st, 2nd, and 3rd).
- Temporary Suspension: The business’s activities may be temporarily suspended. This suspension can also be accompanied by administrative fines.
- Permanent Revocation: If non-compliance persists after suspension, the business license (Perizinan Berusaha or PB) may be permanently revoked.
- Loss of Access: If the revoked license is the NIB, the company will automatically lose all access to the OSS System.
How Permitindo Can Help
Mandatory LKPM reporting requires accurate, timely data. Errors or delays risk severe sanctions—including business suspension or license revocation—directly impacting your right to operate.
Permitindo’s experts understand BKPM Regulation No. 5 of 2025 and the OSS system. We provide end-to-end LKPM reporting services, ensuring your data is compiled correctly and submitted on time. Don’t risk your business over compliance issues. Let us handle your mandatory reporting so you can focus on your core operations.
To ensure your company remains compliant, reach us via contact@permitindo.com or fill in the form below to schedule a consultation.
