Indonesian government through the Coordinating Body Investment Coordinating Board (BKPM) continues strengthen oversight and transparency in the world of investment with obligatory company recipient investment For convey Report Activity Investment (LKPM). Obligations This aiming For ensure that investments made in Indonesia have impact positive to economic , social and environmental .

LKPM Regulations in System National Investment

In accordance with applicable regulations , companies that receive​ good investment​ from abroad ( Foreign Investment /PMA ) and from domestic ( Domestic Investment /PMDN ) is mandatory For report activity his investment in a way Periodic . Terms This set up in a number of regulation legislation , including :

• Regulation President No. 44 of 2016 about Implementation Service Integrated One Stop Service (PTSP) for Investment .
• Regulation Head of BKPM No. 13 of 2017 about Delivery Report Activity Investment (LKPM).
• Law no. 25 of 2007 about Capital investment that becomes base law for management and supervision investment in Indonesia.
• Regulation Government Regulation No. 24 of 2018 about Service Licensing Try Integrated Electronically , which requires digital delivery of LKPM .

Obligation Submission of LKPM

BKPM determines that all over the company that acquired mandatory capital investment submit LKPM in accordance with with provision following :

• Foreign Investment ) Company must report LKPM every 3 months ( quarterly ) .
• Domestic Investment ( PMDN) Company must submitting LKPM every 6 months ( semesterly ) .

Reporting This must done online via​ Online Single Submission (OSS) system managed by BKPM. This aiming For increase efficiency , transparency and accountability in reporting investment in Indonesia.

Contents and Benefits of LKPM

In LKPM, the company must report a number of aspect main from activity investments , including :

1. Realization Investment – Information about the amount of capital that has been realized in period reporting .
2. Labor Absorption – Total Data energy work absorbed , good energy Work local and also energy Work overseas .
3. Activity Production – Report about activity production that has been walk in operational company .
4. Development Progress – Report about development related facilities​ with investment .
5. Social and Environmental Impact – Evaluation to impact investment to environment surroundings and society local .

Sanctions for Companies that Do Not Report LKPM

Companies that do not fulfil obligation submission of LKPM can charged sanctions administrative in accordance with Regulation Government Regulation No. 24 of 2018 and Regulation Head of BKPM No. 13 of 2017. Sanctions that can be imposed given includes :

• Warning written from BKPM.
• Cancellation permission business and investment If company No fulfil his obligation in period certain .
• Sanctions other administrative in accordance with applicable regulation .​

BKPM has authority For do monitoring in a way direct to companies that do not report LKPM accurately time . With existence mechanism monitoring this , it is expected company more discipline in fulfil his obligations .

Coordinating Body Investment (BKPM) is increasingly tighten supervision to companies that do not fulfil obligation capital reporting . Recently this , some company experience revocation permission business consequence No report minimum capital of IDR 10 billion in accordance applicable regulations .​

BKPM confirms that every companies that do not comply provision This will face sanctions firm , including freezing until revocation permission business . “We don’t will tolerate negligent company​ to rules . Compliance to regulation investment is “a necessity ,” he said. BKPM representative in statement officially .

Support Government For Transparency Investment

With existence LKPM regulations , government hope creation system more investment​ transparent and accountable . This is No only beneficial for government in supervision investment , but also provide certainty law for investors who want to to plant its capital is in Indonesia.

The government also continues do socialization to companies and actors effort to understand importance submission of LKPM. Through system digitalization in OSS, the reporting process now more easy and efficient , so that support climate more investment​ healthy and competitive . The perpetrators business appealed For always comply applicable regulations and submit LKPM in accordance with with provisions that have been set . With so , the investment that comes in to Indonesia can give more impact​ maximum for development economy national.