Bontang Investment Agency to Enforce Sanctions on Businesses Failing to Submit Investment Activity Reports
The Investment and One-Stop Integrated Services Agency (DPMPTSP) of Bontang has confirmed it will begin imposing administrative sanctions on businesses that fail to submit their Investment Activity Reports (LKPM). This is in accordance with the latest regulations from the Ministry of Investment and Downstreaming/BKPM.
Karel, Senior Policy Analyst for the Investment Division at DPMPTSP Bontang, stated that the basis for implementing these sanctions is BKPM Regulation Number 5 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"This regulation stipulates that administrative sanctions will be imposed on businesses that do not submit their LKPM. The sanction takes the form of a Written Warning Letter (SP 1) issued automatically by the Ministry of Investment and Downstreaming/BKPM," Karel said.
The enforcement of sanctions will commence from the Quarter II and Semester I 2025 reporting period, with the LKPM reporting window scheduled to run from 1 to 10 July 2025. Businesses across all regions of Indonesia, including those under the jurisdiction of provincial, city and district-level DPMPTSP offices, will be subject to sanctions if they fail to meet their reporting obligations.
"Starting from this reporting period, the central government through the Ministry of Investment will actively impose administrative sanctions on non-compliant businesses. This is an important matter for all businesses, whether large or small-scale," he explained.
According to Karel, the LKPM reporting mechanism forms part of the risk-based business licensing supervision system. The LKPM itself is a mandatory report containing information on investment realisation progress and challenges faced by businesses in conducting their operations. This reporting is not only a legal obligation but also serves as a benchmark for the government in monitoring the investment climate in the regions.
He also warned that neglecting reporting obligations could have implications for the continuity of business licences already granted. Beyond the Written Warning Letter, should violations persist, further administrative sanctions may well be imposed.
"We therefore urge all businesses in Bontang to take advantage of the reporting period opening from 1 July," Karel stressed.
He added that DPMPTSP Bontang stands ready to provide technical assistance to businesses experiencing difficulties with LKPM reporting through the Online Single Submission (OSS) system.
"We are open for consultations, particularly for new businesses that do not yet understand the procedures for online LKPM reporting. Do not wait until you are sanctioned," he concluded.
Karel, Senior Policy Analyst for the Investment Division at DPMPTSP Bontang, stated that the basis for implementing these sanctions is BKPM Regulation Number 5 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"This regulation stipulates that administrative sanctions will be imposed on businesses that do not submit their LKPM. The sanction takes the form of a Written Warning Letter (SP 1) issued automatically by the Ministry of Investment and Downstreaming/BKPM," Karel said.
The enforcement of sanctions will commence from the Quarter II and Semester I 2025 reporting period, with the LKPM reporting window scheduled to run from 1 to 10 July 2025. Businesses across all regions of Indonesia, including those under the jurisdiction of provincial, city and district-level DPMPTSP offices, will be subject to sanctions if they fail to meet their reporting obligations.
"Starting from this reporting period, the central government through the Ministry of Investment will actively impose administrative sanctions on non-compliant businesses. This is an important matter for all businesses, whether large or small-scale," he explained.
According to Karel, the LKPM reporting mechanism forms part of the risk-based business licensing supervision system. The LKPM itself is a mandatory report containing information on investment realisation progress and challenges faced by businesses in conducting their operations. This reporting is not only a legal obligation but also serves as a benchmark for the government in monitoring the investment climate in the regions.
He also warned that neglecting reporting obligations could have implications for the continuity of business licences already granted. Beyond the Written Warning Letter, should violations persist, further administrative sanctions may well be imposed.
"We therefore urge all businesses in Bontang to take advantage of the reporting period opening from 1 July," Karel stressed.
He added that DPMPTSP Bontang stands ready to provide technical assistance to businesses experiencing difficulties with LKPM reporting through the Online Single Submission (OSS) system.
"We are open for consultations, particularly for new businesses that do not yet understand the procedures for online LKPM reporting. Do not wait until you are sanctioned," he concluded.