Investment Activity Report (LKPM)

LKPM stands for Laporan Kegiatan Penanaman Modal, which is an Indonesian term for Investment Activity Report. It is a mandatory report that must be submitted by business entities to the Investment Coordinating Board (BKPM) on a regular basis. The report contains information on the progress of investment realization by the company, including:

• Realization of investment: The amount of investment that has been invested, both in the form of foreign capital and domestic capital.

• Realization of labor: The number of workers who have been absorbed, both local and foreign workers.

• Realization of production: The amount of production that has been produced, both for the domestic market and exports.

• Realization of exports: The value of exports generated from the products produced.

• Partnership obligations: Fulfillment of partnership obligations with local micro, small, and medium enterprises (MSMEs).

• Other obligations: Fulfillment of other obligations related to the implementation of investment.

Purpose of LKPM

The main purpose of LKPM is to:

• Monitoring and evaluation: Monitor and evaluate the implementation of investment activities in Indonesia.

• Policy planning: Provide data and information needed to formulate policies and programs in the field of investment.

• Transparency: Increase transparency in the implementation of investment activities.

• Accountability: Increase the accountability of business entities in implementing investment activities.

Types of LKPM

There are several types of LKPM, including:

• Based on the stage of business:

  • Construction stage LKPM: Reported by companies that are still in the construction stage or have not yet started commercial production.

  • Production/commercial operation stage LKPM: Reported by companies that have started production and sell products or services commercially.

• Based on the scale of business:

  • Micro, small, and medium enterprise (MSME) LKPM: Usually has a simpler format and less frequent reporting than large companies.

  • Medium and large company LKPM: Has a more detailed format and more frequent reporting, usually quarterly.

• Based on the type of company:

  • Domestic company LKPM: Reported by companies whose capital is entirely from within the country.

  • Foreign investment company (PMA) LKPM: Reported by companies whose capital is partially or entirely from abroad.

Benefits of LKPM

There are several benefits of LKPM, including:

• Legal obligation: It is a legal obligation that must be fulfilled by business entities.

• Benefits for companies: Helps companies manage their business activities better.

• Contribution to the country: Contributes to national economic development.

How to report LKPM

LKPM reporting is currently done online through the Online Single Submission (OSS) system based on risk. Business entities can access the OSS system to fill out and submit LKPM reports.

LKPM is an important report that must be submitted by business entities to the BKPM. It is a way for the government to monitor and evaluate the implementation of investment activities in Indonesia. It is also a way for business entities to demonstrate their commitment to transparency and accountability.

If you are a business entity that is required to submit LKPM, we can help you with the process. We have a team of experienced professionals who can help you prepare and submit your LKPM on time and accurately.

Please contact us at askcfo@dana-cosultants.com or +62 8112742314 for more information.

We hope this blog post has been helpful. If you have any questions, please feel free to leave a comment below.