What is LKPM? And Who are Required to Do It?

Recently, the Badan Koordinasi Penanaman Modal (BKPM) has been intensifying its socialization efforts regarding the obligation for business owners in Indonesia to periodically submit Laporan Kegiatan Penanaman Modal (LKPM). However, in general, many still do not understand what LKPM is.

What is LKPM?

LKPM is a report that explains the development of investment realization, along with the issues faced by business owners, which must be prepared and submitted periodically.

Who are required to report LKPM?

Business owners who are required to report LKPM include small, medium, and large businesses:

1. Small business with investment value of 1-5 billion
2. Medium business with investment value of 5-10 billion
3. Large business with investment value higher than 10 billion

How is the frequency of LKPM reporting?

1. Small businesses are required to report every semester (June and December)
2. Medium and large businesses are required to report every quarter (March, June, September, and December)

What are the probable imposed sanctions if LKPM is not reported?

According to BKPM regulation No. 5 Year 2021, the possible sanctions include: 1) Written warnings to the business owners, and 2) Temporary suspension of business activities should the previous written warnings are ignored.

For more detailed information regarding LKPM, you can visit the official BKPM website.

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