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Many PT PMA owners only become aware of their LKPM (Investment Activity Report) obligations after receiving a warning letter at their registered email address. However, LKPM is more than just a formality. Failure to submit the report can result in business licenses being suspended and, in some cases, the company’s NIB (Business Identification Number) being revoked.
LKPM is a periodic investment activity report submitted to the Ministry of Investment (BKPM) to report on the company’s investment activities and progress. The obligation to submit LKPM begins once a company has obtained its NIB (Business Identification Number).
The LKPM report covers several key aspects of a company’s investment activities, including the amount of capital invested, the number of employees hired, the products or services produced or sold, and whether all required supporting licenses and permits are in place.
The government uses this information to monitor whether investors are actually carrying out their investment plans. Keeping your LKPM reports accurate and up to date also helps maintain your company’s legal status in the OSS system.
Since the implementation of BKPM Regulation No. 5 of 2025, the LKPM reporting deadline has been extended from the 10th to the 15th day after the end of each reporting period. All PT PMA companies are classified as large-scale businesses and are therefore required to submit LKPM reports every quarter.
It is important to note that LKPM must be submitted for each business activity and location. If a PT PMA has multiple KBLI (Indonesian Standard Industrial Classification) codes or operates in multiple locations—for example, a villa in Canggu and a café in Ubud—each business activity and location must be reported separately.
Common LKPM Reporting Mistakes:
The business is not yet operational, so there is no need to file the LKPM.
The most common mistake. The LKPM reporting obligation begins once the NIB is issued, not when the business starts operating. Companies that are still in the preparation stage—for example, a villa that is still under construction—are still required to submit an LKPM report under the preparation/construction stage.
Continuously reporting “Nil” investment realization.
Reporting Nil investment realization is better than failing to submit the report. However, be careful: reporting nil investment realization for four (4) consecutive reporting periods can trigger sanctions. If capital has actually been spent on land lease, renovations, equipment, or other investment-related expenses, make sure to report the actual amount accordingly.
LKPM figures do not match the company’s financial statements and tax reports.
This is often overlooked. The investment figures reported in LKPM should be consistent with the company’s accounting records, financial statements, and corporate tax returns (SPT). Employee numbers should also be consistent with the data reported in PPh 21 (Article 21 Income Tax) filings and BPJS reports.
If there is significant discrepancy—for example, LKPM reports an investment of IDR 10 billion while the balance sheet shows only a small portion of that amount—this could raise questions from BKPM or the tax authorities. For this reason, LKPM should be prepared based on accurate accounting records rather than estimates or assumptions.
Sanctions may be imposed if a company fails to submit its LKPM for two (2) consecutive reporting periods or reports zero investment realization for four (4) consecutive reporting periods. The sanctions are imposed progressively:
First Written Warning → Second Written Warning → Third Written Warning → Temporary Suspension of Business Activities → Revocation of Business Licensing
The good news is that at each warning stage, you still have an opportunity to remedy the issue by submitting your LKPM as soon as possible. So, if you have already received a warning notice through the OSS system, don’t panic. Take action promptly before the matter escalates to the next stage.
LKPM should be prepared carefully and submitted accurately. If you are busy running your business and do not have time to handle the reporting yourself, consider working with a tax consultant to ensure your LKPM is submitted on time and remains consistent with your company’s accounting records and tax filings.
Right Now Consulting is tax consultant in Bali who is focusing to help individuals and businesses with their Accounting and Taxation matters. Right Now Consulting provides accounting / bookkeeping and tax consultant / taxation services.
