LKPM Reporting 101: What You Need to Know (and Avoid) 

What is LKPM in Indonesia?

LKPM is a mandatory periodic report submitted quarterly or semi-annually, depending on the size of your business, through the OSS system. It details the realization of your business investments, including capital injection, operational spending, infrastructure development, job creation, and project milestones. Every investor, both domestic and foreign, is legally required to submit LKPM to the Ministry of Investment. Non-compliance can lead to administrative sanctions and legal consequences.

Why is LKPM Important for Businesses in Indonesia?

LKPM reporting is not just a formality—it directly impacts how your business is perceived by Indonesian regulators. The OSS system now tracks your company’s reporting status in real-time, and discrepancies or delays are easily flagged.

Companies that fail to submit accurate and timely LKPM reports may face escalating sanctions, including:

• Written warnings

• Suspension of business activities

• Revocation of business licenses

Common LKPM Mistakes to Avoid

Many companies in Indonesia make critical errors when reporting LKPM. To avoid compliance issues, watch out for these common mistakes:

• Reporting zero investment for multiple periods without justification.

• Missing LKPM submission deadlines, particularly in the early stages of operations.

• Incorrect data reporting, such as:
  

  • Not breaking down investment by KBLI (Indonesian Business Classification Code) and business location.
    

  • Submitting cumulative investment instead of new realized investment for the reporting period.
    

• Assuming submission equals compliance – Your report must show as “Approved” in the OSS system, not just “Submitted.”

The Role of LKPM in Business Compliance in Indonesia

Accurate and timely LKPM reporting demonstrates that your company is transparent, reliable, and actively operating. It enhances your company’s reputation not only with the government but also with potential investors and financial institutions. Whether you're managing a PT PMA (Foreign-Owned Company) or a local business entity, making LKPM a priority is essential for smooth operations and long-term success in Indonesia.