When investing in Indonesia, one of the most important regulatory obligations for foreign and domestic companies is the submission of LKPM (Laporan Kegiatan Penanaman Modal / Investment Activity Report). This report is not only a formality—it is a legal requirement under the Indonesian Investment Law and the supervision of the Indonesia Investment Coordinating Board (BKPM).
Failure to submit LKPM properly and on time may result in administrative sanctions, suspension of business licenses, or even revocation of permits. Therefore, ensuring accurate and timely reporting is essential for foreign investors to maintain compliance and protect their investment in Indonesia.
What is LKPM?
LKPM is a periodic report that must be submitted by companies holding a business license in Indonesia, detailing:
- Progress of investment realization
- Business activities and operational status
- Utilization of manpower and capital
- Potential challenges in the implementation of the investment
The LKPM provides transparency to the government and assures that your business is operating according to Indonesian regulations.
Why is LKPM Submission Important?
- Legal Compliance
Under Law No. 25 of 2007 on Investment, every investment company is obliged to report their activities. Non-compliance may trigger administrative penalties. - Business Continuity
A complete and timely LKPM ensures your business licenses, such as NIB, location permits, or operational licenses, remain valid. - Government and Investor Trust
Proper reporting demonstrates seriousness and credibility, both to regulators and potential business partners. - Avoiding Sanctions
Companies failing to submit LKPM risk suspension or cancellation of their business licenses, which could disrupt operations.
Common Challenges for Foreign Investors
Many foreign investors face difficulties in preparing and submitting LKPM, such as:
- Language barriers in understanding regulations
- Technical complexity of the OSS (Online Single Submission) system
- Misinterpretation of investment classifications
- Lack of updated information on regulatory changes
These challenges often lead to late or inaccurate submissions, putting companies at unnecessary risk.
How Dewata Law Firm Can Help
At Dewata Law Firm, we provide comprehensive legal assistance for foreign companies in Indonesia, including end-to-end LKPM reporting services. Our support includes:
- Preparing and compiling all necessary data for LKPM
- Submitting reports through the OSS system on your behalf
- Ensuring compliance with the latest BKPM regulations
- Advising on legal aspects of investment activities
- Representing and assisting in case of audits or clarifications by the authorities
With our professional team, you can focus on growing your business while we ensure your LKPM obligations are fulfilled accurately and on time.
Secure Your Investment with Professional Legal Support
Navigating Indonesia’s regulatory framework can be complex, especially for foreign investors. Submitting LKPM is not just an administrative duty—it is a safeguard for your business licenses and investment stability.
Dewata Law Firm is ready to be your trusted partner in legal compliance and investment reporting.
📩 Contact us today to discuss how we can assist your company with LKPM reporting and other legal matters related to your investment in Indonesia.