A step-by-step guide to company dissolution in Indonesia. Ensure a smooth, compliant closure of your business with our expert assistance.
The LKPM (Laporan Kegiatan Penanaman Modal) is an Investment Activity Report that businesses in Indonesia must submit. Depending on their capital, companies file the report either quarterly or semi-annually to the Ministry of Investment (Badan Koordinasi Penanaman Modal - BKPM). Each report covers a specific business activity, classified under the Klasifikasi Baku Lapangan Usaha Indonesia (KBLI) code. The KBLI system categorises different economic activities. A company must submit one report per activity. For instance, if a company conducts five activities, it must submit five reports each period.
The LKPM report applies to all legal entities in Indonesia, whether locally or foreign owned. It allows the government to monitor company progress, assess profitability, evaluate investment growth, ensure regulatory compliance, and determine contributions to local development. In short, it promotes transparency, compliance, and the monitoring of investment activities. If you’re unsure about the process, we can guide you through every step.
All legal entities operating in Indonesia must submit their LKPM reports via the OSS (Online Single Submission) system, managed by the Ministry of Investment (BKPM).
The submission schedule depends on a company’s capital:
Reports must be submitted between the 1st and 10th of the designated months. Don’t let deadlines stress you out—our team of legal experts is here to ensure your LKPM report is filed on time.
To submit the LKPM report, businesses need several documents, grouped into three categories:
Financial Data: Including financial performance, operational expenses, and company assets. Accurate accounting is essential. Key documents are the balance sheet, detailing assets and liabilities, and the profit and loss statement, summarising income and expenses.
Company Responsibilities: Encompassing worker training, partnerships, corporate social responsibility, and environmental management obligations. Environmental obligations include the Environmental Impact Analysis (AMDAL) and Environmental Management Efforts (UKL-UPL).
Company Workforce: You must submit a comprehensive list of employees (foreign and local) and provide data like social security (BPJS) registration and proper work permits for foreign employees.
Accurate accounting is crucial when completing the OSS fields, including expenses and activities. The Ministry of Investment distinguishes between companies with commercial activities and those without, such as dormant or under-construction entities.
At SAS, we handle the entire administrative process for your LKPM report. Our accounting team manages your financial reports and provides the necessary information to the legal team every three or six months. The legal team then submits the report, handles revisions if needed, and communicates with the government. You can focus on your business while we manage the LKPM process.
After submission, the government reviews the report and either approves it or requests revisions. SAS will provide proof of submission and approval once the government responds.
Currently, there are no financial penalties for missing the LKPM submission deadlines. However, the government may conduct random account checks. Failure to submit two reports in a row may result in a warning letter and a temporary freeze on business activities.
Partner with SAS and let our experts handle your LKPM report, ensuring compliance and saving you time. Contact us today to get started.
A step-by-step guide to company dissolution in Indonesia. Ensure a smooth, compliant closure of your business with our expert assistance.
Learn about the LKPM Investment Report, its purpose, submission deadlines, and how we can help you manage the process seamlessly. Ensure compliance and avoid penalties with our expert assistance.
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