The Indonesia Investment Coordinating Board (BKPM) has finally made public a regulation mandating all investors (domestic and foreign) to submit an investment activities report (LKPM) through the Online Single Submission (OSS) system. The regulation is BKPM Regulation 06/2020 and its effective date was Nov 13, 2020.
There are two types of LKPM: the development/construction stage LKPM for businesses that have not started operating commercially, and the production/operation stage LKPM for businesses that are operating commercially. Businesses with investments valued at Rp 50 million to Rp 500 million are required to submit an LKPM once every six months. Investments valued at Rp 500 million and above must report every three months. Investments below Rp 50 million and those coming from upstream oil and gas, banking, non-bank financial institutions, and insurance are exempt from mandatory reporting.
Trade Representative Offices (KPPA) and Foreign Company Representative Offices (KP3A) are also required to submit reports every six months, while Foreign Construction Services Representative Offices (BUJKA) are required to report annually. BKPM will compile the information to be submitted to the president and relevant ministries. Failure to comply will result in administrative sanctions, including revocation of business licenses and the closing down of a company’s administrative office.
