All most people know about the Investment Activity Report or LKPM when turning to us is that it is an extra burden on their company and that it takes time. Think of LKPM as brushing your teeth: it doesn’t take long and if done regularly and correctly, it keeps major problems away.
This article provides you a blueprint on how we do this ‘brushing’ for our corporate customers with minimal involvement on their side.
Who needs to report
Every foreign owned limited liability company (PT PMA) is obliged to report its investment activity. There’s no way around it. A few additional pieces of information, though.
Companies granted import duty exemption, should submit their import realization report attached together with copy of the notification of import of goods (PIB) given by the Directorate General of Customs and Excise;
In the case that a company has undergone a merger, the surviving company should submit LKPM for all capital investment activities as the result of the merger.
Timeline of reporting Investment Activity Report
There are different deadlines depending on what your legal entity is and what stage of your business you are in:
* Companies which are still in the development process are supposed to report periodically every 3 months:
1. January-March report before April 5th,
2. April-June before July 5th,
3. July-September before October 5th,
4. October-December before January 5th;
* Companies that have obtained Business Licence, LKPM is to be submitted every semester (so twice a year):
1. January-June before end of July,
2. July-December before end of January;
* Foreign company representative office, LKPM is to be submitted in one time, end of every calendar year.
Who wants the information
* Companies whose capital investment activity covers more than one municipality/city, must submitted LKPM for each of the municipalities/cities.
* Companies whose capital investment activity consists of more than one business fields, has to report each business field in a separate report.
* Companies that are located in free trade and free port zone as well as in specific economic zone have to submit a LKPM to each of the head of the zones concerned. A copy also has to be sent to Head of BKPM Deputy for Control of Capital Investment Implementation.
How to report
There are many ways to submit your Investment Activity Report:
* Directly to BKPM by submitting the hard copy version; OR
* Fill an online application through a system called SPIPISE (to get the access, you should request directly from BKPM offices).
BKPM requires that companies appoint a certain person to be responsible for the making of the report and that person be named when submitting the report. The person does not need to be an employee of the company and Straits Partners will gladly take care of your Investment Activity Reports. You are also welcome to read our detailed article on what to report and how to fill LKPM. Investment Plan Reporting is part of our corporate compliance service. We know everyone likes watching videos better than reading; so here, a short video explaining what we mean with corporate compliance:
Why all this is necessary
You might as why you have to spend so much time reporting on a plan that you have already launched. Well, officially the government wants Investment Activity Report to be submitted in order to increase the monitoring of capital investment realization and to monitor investors’ activities challenges while investing in Indonesia. While this may be using up scarce resources that you would gladly use elsewhere, there are no shortcuts when it comes to reporting your investment plan.
This article is up-to-date and the information used is from these laws, if you want to check them out yourself: Investment Activity Report govern by Regulation of the Head of BKPM No.13 of 2009 dated 23 December 2009 as amended by a Regulation of Head of BKPM No.7 of 2010 dated 31 March 2010 concerning Guidelines and Procedures for the Control of Capital Investment Implementation.
Feel free to reach out to us at [email protected]