The Investment Activity Report (LKPM) is an administrative obligation\nthat business actors must fulfil as a form of reporting on the progress\nof investment realisation to the government. Through the LKPM, the\ngovernment can monitor the implementation of investment activities,\nidentify various obstacles faced by business actors, and formulate\npolicies that support the investment climate in Indonesia.<\/p>\n
For non-Micro and Small Enterprises (Non-UMK), LKPM submission is\ncarried out periodically through the Online Single Submission (OSS)\nsystem, observing provisions regarding the reporting period, the type of\ndata that must be filled in, and the stage of business activity being\nundertaken.<\/p>\n
Obligation to Submit LKPM<\/p>\n
Based on Article 15 of the Investment Law, every investor is obliged\nto create a report on investment activities and submit it to the\nInvestment Coordinating Board (BKPM). Article 5 letter c and Article 32\nparagraph (1) of BKPM Regulation Number 5 of 2021 also affirm that every\nbusiness actor is obliged to submit an LKPM. The LKPM must be created by\nthe investor for each business sector and\/or location.<\/p>\n
The obligation to submit a Non-UMK LKPM applies to business actors\nclassified as medium and large enterprises. A medium enterprise is a\nbusiness actor with business capital of more than Rp5 billion up to Rp10\nbillion, while a large enterprise is a business actor with business\ncapital above Rp10 billion.<\/p>\n
Non-UMK LKPM must be submitted periodically during both the\nconstruction and operational stages. Reporting is carried out quarterly:\nQuarter I from 1\u201310 April, Quarter II from 1\u201310 July, Quarter III from\n1\u201310 October, and Quarter IV from 1\u201310 January of the following year.\nBusiness actors must observe this schedule so that reporting obligations\ncan be fulfilled on time.<\/p>\n
Components of Non-UMK LKPM<\/p>\n
LKPM completion is divided based on the realisation stage, namely\nLKPM for the construction stage and LKPM for the operational\/commercial\nstage. The following is an explanation.<\/p>\n
LKPM Construction Stage<\/p>\n
During the construction stage, business actors report the realisation\nof fixed capital that has been expended, such as land acquisition,\nconstruction of buildings, purchase of machinery and equipment, and\nother costs, for example, feasibility study costs and vehicle rental.\nMeanwhile, the working capital component at this stage is only filled in\nonce, when the business activity is ready to enter the operational or\ncommercial stage.<\/p>\n
LKPM Operational\/Commercial (Production) Stage<\/p>\n
After the business activity enters the operational\/commercial stage,\nbusiness actors report additional investment realisation in the form of\ncapital expenditure on fixed assets, such as additions of land,\nbuildings, or machinery. Additional working capital realisation, such as\nthe purchase of raw materials, operational costs (electricity and\nwater), and employee salaries, no longer needs to be entered into the\nproduction stage LKPM.<\/p>\n
Submitting LKPM via OSS<\/p>\n
First, access and log in using a registered OSS account with a\nMobile Number, Email, Username, or NIB along with a Password.<\/p><\/li>\n
Select the Reporting menu, then click LKPM Report and press the\nCreate Report button.<\/p><\/li>\n
Tick the box on the Business Activity Data or Business Activity\nNumber (NKU) to be reported.<\/p><\/li>\n
Answer the question whether the business activity is ready for\noperation and\/or commercial. Select Yes or No to determine the Report\nType (Construction or Production Stage).<\/p><\/li>\n
Enter the additional value of capital realisation in the\nreporting period (not the total overall value accumulated\nmanually).<\/p><\/li>\n
Fill in the additional number of Indonesian and foreign workers\nduring the reporting period (excluding commissioner and director\npositions).<\/p><\/li>\n
Select the category and explain the problems faced by the company\n(optional, can be filled in if there are problems).<\/p><\/li>\n
Complete the data of the LKPM responsible officer, then tick the\nstatement checkbox (disclaimer), then click Send Report.<\/p><\/li>\n
Monitor the LKPM status to ensure the obligation is\nfulfilled.<\/p><\/li>\n<\/ul>\n
Administrative Sanctions for Negligence in LKPM Reporting<\/p>\n
If a business actor does not comply with the obligation to submit an\nLKPM, the government may impose tiered administrative sanctions. The\nforms of these sanctions include:<\/p>\n
written warnings (first warning up to fourth warning);<\/p><\/li>\n
temporary suspension of business activities;<\/p><\/li>\n
imposition of administrative fines;<\/p><\/li>\n
imposition of police forcible power; and\/or<\/p><\/li>\n
revocation of basic requirements, business licences and\/or\nbusiness activities.<\/p><\/li>\n<\/ul>\n
The sanction is declared void if the LKPM submission obligation is\nfulfilled. Otherwise, the next administrative sanction will be\nimposed.<\/p>\n
In the event that a business actor is subject to administrative\nsanctions, these sanctions will be automatically recorded through OSS.\nThe administrative sanctions will reduce the compliance score in the OSS\nsystem assessment.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/guide-to-submitting-investment-activity-reports-for-non-umk-businesses-1781887831", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }