Many businesses already understand the purpose of LKPM reporting Indonesia, but aren’t sure whether the requirement applies to them. Clarifying your obligations can help you feel confident and responsible in maintaining good standing with regulators.
This article will help clarify who is required to handle LKPM reporting in Indonesia, who may be exempt, and how to check your status using OSS-RBA, making compliance feel more manageable and less stressful.
Who must submit LKPM reporting Indonesia?
Not all companies are required to submit reports, but many underestimate how early the obligation begins. Below are the groups most commonly required to submit LKPM reports in Indonesia:
Foreign-owned companies (PT PMA)
Foreign-owned companies are automatically included in the reporting system, regardless of whether they are generating revenue yet. The obligation applies from the moment your investment plan is approved, and your NIB (Business Identification Number) is issued.
- Includes newly established or pre-operational entities
- Reporting is still expected if the business is dormant, but licensed
- Applies to both majority and minority foreign ownership structures
Medium and large domestic investors (PMDN)
Domestic companies are required to report when their investment value exceeds certain thresholds or when their licensing involves moderate- to high-risk sectors. This applies to businesses planning growth, expansion, or long-term capital allocation.
- Companies with multiple branches or large-scale operations
- Entities involved in construction, logistics, or energy sectors
- Investment typically exceeds IDR 50 million or more
Companies under medium-high or high-risk classifications
Risk-based licensing assigns a risk level to each KBLI code. Companies operating in medium-high or high-risk sectors are usually required to submit reports, regardless of whether the business appears small on paper.
- Reporting is linked to OSS-RBA’s risk level, not your revenue
- Many startups are surprised to find themselves in this category
How to check if you’re required to do LKPM reporting Indonesia
Understanding whether your business needs to submit LKPM reporting in Indonesia depends on four main factors. Check your licensing documents and OSS dashboard now to confirm your status and avoid missing deadlines.
Business license and NIB
If your business has an active NIB and an approved investment plan, there’s a strong chance reporting is required. This is especially the case for companies processed through OSS-RBA, where reporting obligations are automatically assigned during the licensing stage.
- An active license linked to capital investment = reporting likely required
- PT PMA entities are almost always included
KBLI classification
Each business activity in Indonesia is classified under a KBLI code. Some codes fall under sectors considered medium or high-risk, and these are flagged more often for LKPM reporting.
If your company operates in sectors like manufacturing, energy, or infrastructure, reporting obligations are more common, even if you’re a smaller player in that space.
- High-risk sectors = higher chance of mandatory reporting
- KBLI codes affect both license type and reporting duties
Investment value
Reporting is not limited to big corporations. If your planned or approved capital investment meets or exceeds a certain threshold (commonly IDR 50 million or more), it may, in itself, trigger LKPM requirements.
What matters is the approval, regardless of fund deployment status.
- Thresholds are based on declared capital, not revenue
- Passive or early-stage projects may still be required to report
OSS dashboard status
One of the simplest ways to confirm your status is to log in to OSS and check your tasks. If LKPM reporting Indonesia appears in your company dashboard, it’s not optional. The system shows the required report type and submission deadlines.
- Look under “Reporting Obligations”
- Missed reports can lead to OSS system warnings or flags
Read more: OSS Indonesia: Complete guide to business licensing, KBLI, and compliance
Who is exempt from LKPM reporting Indonesia?
Not every registered business is required to submit investment activity reports. Knowing if your company qualifies for exemptions can help you feel more in control and reduce unnecessary concern about compliance obligations.
These exemptions are based on business scale, structure, and in some cases, the sector’s regulatory framework.
Micro and small businesses (UMKM)
The exemption typically applies to:
- Businesses with capital below IDR 50 million
- Local ownership without foreign shareholders
- Enterprises operating in low-risk industries
However, if a micro or small business upgrades its licensing or accepts outside investment, the exemption may no longer apply.
Entities that are not yet operational
If your business isn’t operating yet, such as no staff, no contracts, no capital used, you may be exempt temporarily. Still, a zero-activity report is often expected to show you’re not ignoring the process.
Regulated sectors with separate reporting
Some industries in Indonesia, such as oil and gas, mining, and certain financial services, follow their own sectoral reporting systems. These frameworks may override or replace LKPM requirements.
- Check if your sector is governed by a separate regulator (e.g., OJK, ESDM)
- Verify whether that reporting satisfies the BKPM requirements
- Do not assume exemption without formal confirmation
Penalties for not submitting LKPM reports
Ignoring LKPM reporting obligations can lead to severe penalties, including warnings, suspension of your NIB, OSS restrictions, and damage to your company’s reputation, underscoring the importance of compliance.
- Administrative warnings: BKPM may issue formal warnings (SP1, SP2), and your NIB can be suspended if you continue missing reports.
- OSS restrictions: You may lose access to permits or updates in the OSS system. Future changes to your business profile could be blocked.
- Reputational risk: Non-compliance affects how regulators and investors view your company, especially for foreign-owned businesses.
The benefits of LKPM outsourcing
For many companies, handling LKPM reporting Indonesia internally can become a recurring source of stress, especially when teams are small, deadlines pile up, or OSS notifications are missed.
Outsourcing LKPM reports to a reliable service provider not only reduces the risk of penalties but also brings structure, consistency, and peace of mind to your reporting process.
- Reports are submitted accurately and on time
- Stay updated with OSS and BKPM regulations
- Reduce internal errors and missed deadlines
- Build a clean and consistent compliance history
Whether you’re a PT PMA just starting or a domestic business scaling up, outsourcing can save time and prevent avoidable issues.
Mastering Corporate Taxation in Indonesia
Submit your LKPM with InCorp’s assistance
Staying compliant doesn’t need to be confusing or time-consuming. If you’re unsure about your LKPM status or want to avoid costly mistakes, InCorp Indonesia (an Ascentium Company) can handle it for you. With InCorp, you can:
- Confirm your LKPM reporting eligibility with expert review
- Submit quarterly or biannual reports on time, every time
- Avoid NIB suspension, BKPM warnings, and OSS restrictions
Maintain full compliance while focusing on your operations by filling out the form below.
Frequently Asked Questions
What is LKPM reporting in Indonesia?
LKPM is an investment activity report submitted to the government to track capital realization and business progress, mainly for licensed and investment-based companies.
Who is required to submit LKPM reports?
LKPM reporting is required for foreign-owned companies (PT PMA), medium to large domestic investors, and businesses operating in medium-high or high-risk sectors.
Does a company need to submit LKPM even if it has no revenue yet?
Yes. Reporting may still be required once an investment plan is approved and an NIB is issued, even if the business is not yet operational or generating income.
How can a company check if LKPM reporting is mandatory?
You can check your OSS dashboard under reporting obligations, review your KBLI risk level, and confirm whether your investment value or license triggers LKPM requirements.
What happens if a company does not submit LKPM reports?
Failure to submit LKPM can lead to warnings, OSS restrictions, suspension of the NIB, and reputational risks with regulators and investors.
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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.
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Heldy Narua
Senior External Finance Manager at InCorp Indonesia
Heldy, with seven years of experience, leads InCorp Indonesia’s External Finance team, specializing in reliable Payroll Outsourcing and Finance Management solutions. She has an Accounting and Business Administration degree from Sampoerna University and Oregon State University. She is certified with Brevet AB, highlighting her technical expertise and commitment to client success.
