Indonesia is a country that has abundant resources and a growing consumer market. This makes Indonesia a promising destination for foreign and domestic investment. To maintain transparency and regulatory compliance, the Indonesian government has issued a guideline for Investment Activities (LKPM) which plays an important role in ensuring accountability, facilitating investment trends, and facilitating informed decision-making. However, there are many foreign and domestic investors who are still confused about the LKPM reporting period.
In this article, we will provide an overview of the Investment Activity Report (LKPM) period.
Reporting Obligations and Regulatory Framework
The reporting obligation for every investor as stated in Article 15 letter (c) of Law no. 25 of 2007 concerning Market Investment 5 letter(c). And the regulatory framework regarding LKPM is regulated by the Investment Coordinating Board (BKPM) in BKPM Regulation No. 5 of 2001 concerning Guidelines and Procedures for Supervision of Risk-Based Business Licensing.
Timeline Reporting
As determined by BKPM, LKPM reporting is carried out periodically according to the period of each category of business actors.
For small business actors who have business capital of more than Rp. 1,000,000,000 (one billion), the reporting period is :
Report I for the period January-June, is due by July 10th of the same year.
Report II for July-December period, is due by January 10th of the next year.
For medium and large business actors who have business capital of more than Rp. 5,000,000,000 (five billion), the reporting period is :
First Quarter (Q1), January-March period. LKPM must be submitted by April 10th of the same year.
Second Quarter (Q2), April-June period. LKPM must be submitted by July 10th of the same year.
Third Quarter (Q3), July-September period. LKPM must be submitted by October 10th of the same year.
Fourth Quarter (Q1), October-December period. LKPM must be submitted by January 10th of the next year.
Still confused about LKPM reporting in Indonesia?
If you are still experiencing problems, why not consult a professional consultant in the field of preparing and submitting investment reports, such as the experts at Keepers Financial Services.
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