Indonesia’s growing economy offers significant business investment opportunities, but accountability and transparency are essential for success. As companies operate in this active market, LKPM reporting is not just a requirement, but a tool that can significantly boost investors’ trust and confidence in your business.
Let us explore below how LKPM report Indonesia can boost your confidence when doing business in Indonesia.
Why LKPM reporting matters?
For anyone investing in Indonesia, Compliance with LKPM (Laporan Kegiatan Penanaman Modal) is a sign of commitment to business transparency in Indonesia. LKPM report Indonesia is required by the Indonesia’s Investment Coordinating Board (BKPM)
This mandatory report should be submitted quarterly or biannually via online through the OSS system.
Purpose of the Report
- Track Investment Progress: Authorities monitor whether businesses meet their investment plans and timelines.
- Improve Data Accuracy: Online reporting provides real-time data for better policy decisions.
- Protect Investors: It ensures local and foreign businesses operate legally and transparently.
Read more: A compliance guide about the LKPM report for your business
How LKPM reporting boosts investors’ confidence in Indonesia
Investor trust grows when businesses are transparent and compliant. Timely LKPM reporting through the OSS system sends a strong message to stakeholders.
Proves Reliability
On-time LKPM online submissions show that a business follows regulations and meets its commitments.
Supports Transparency
Accurate LKPM report Indonesia give the government precise data to improve policies, infrastructure, and the overall business environment.
Enhances Global Reputation
Consistent BKPM online reporting proves Indonesia values accountability, attracting more serious investors to the Asian market.
Deadlines and risks for non-compliance
The LKPM report Indonesia has strict submission deadlines that every business must comply with to avoid legal and financial trouble.
| Reporting Type | Period | Deadline |
| Quarterly (Operating Business) | Q1: Jan – Mar | April 10 |
| Q2: Apr – Jun | July 10 | |
| Q3: Jul – Sep | October 10 | |
| Q4: Oct – Dec | January 10 (following year) | |
| Biannual (Construction Phase) | First Semester: Jan – Jun | July 10 |
| Second Semester: Jul – Dec | January 10 (following year) |
Missing the LKPM reporting deadlines can lead to significant consequences, including financial losses, operational delays, and reduced investor confidence. These penalties can directly impact your business’s bottom line and its reputation in the market.
Financial Penalties
Late or missing LKPM reports can result in fines from BKPM, directly affecting your profit margins. For repeat offenses, penalties may escalate and impact your legal standing.
How to avoid:
- Set reminders well before each deadline.
- Assign a dedicated compliance officer or consultant.
- Use LKPM online submission to ensure timely delivery.
Business Restrictions
Non-compliance of LKPM report Indonesia can block or delay business permits, license renewals, or business expansions. This may halt planned projects and damage your business momentum.
How to avoid:
- Keep all investment activity records organized and up to date.
- File reports early to allow time for corrections if needed.
- Integrate LKPM tracking into your regular business reporting schedule.
Loss of Investor Trust
Irregular reporting signals poor company governance and project execution, which can make investors hesitant to provide further funding or support.
How to avoid:
- Maintain transparency by sharing progress updates with stakeholders.
- Show consistency in meeting both LKPM OSS deadlines and internal reporting commitments.
- Work with legal or compliance experts to ensure accuracy and completeness in reports.
Read more: Financial statement reporting: A must-know for business.
Building your business trust with InCorp
The LKPM report builds transparency, proves credibility, and boosts investor trust. Meeting deadlines and submitting accurate reports helps businesses grow confidently in the Asian market.
InCorp Indonesia (an Ascentium Company) offers expert LKPM reporting and company registration services, ensuring you meet all legal requirements, including report and guidance. Our team of professionals can guide you through the entire reporting process, ensuring accuracy and timeliness.
Ready to expand into Indonesia? Contact us today to start your business in Indonesia the right way!
Frequently Asked Questions
Who is required to submit the LKPM report Indonesia?
All companies holding an NIB, both local and foreign, are required to submit reports to BKPM.
How do you submit the LKPM report?
The report is filed online through the OSS system, following BKPM’s format and deadlines.
What information is included in the LKPM report Indonesia?
It covers investment realization, project progress, labor usage, and other business activities.
What benefits come from submitting the LKPM report Indonesia?
Compliance builds transparency, ensures smooth licensing, and increases investor confidence.
Get in touch with us.
What you'll get
A prompt response to your inquiry
Knowledge for doing business from local experts
Ongoing support for your business
Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Ales Cina
Consulting Manager at InCorp Indonesia
Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.
