BKPM Takes Action Against Companies Failing to Submit Investment Activity Report (LKPM)

Submission of Investment Activity Reports (“LKPM”), which has long been required under Law No. 25 of 2007 on Investment, is now being more actively enforced by the Investment Coordinating Board (“BKPM”). LKPM as a mandatory periodic report on investment realization submitted through the Online Single Submission system (“OSS”), and failure to comply may result in administrative sanctions ranging from written warnings to limitations on business activities, or even revocation of business licenses. Reporting timelines differ by business scale, with small business scale required to report twice a year and medium to large business scale required to report quarterly. In light of increased enforcement in 2026, companies are strongly encouraged to ensure timely and full compliance to avoid sanctions.

What is LKPM?

LKPM are not a new concept in Indonesia – since the enactment of Law No. 25 of 2007 on Investment, there has been a requirement to submit an investment report to BKPM. In short, LKPM is a mandatory report on the progress of investment realization, which must be submitted periodically through the OSS.

What are the Sanctions for Not Reporting LKPM?

While the LKPM requirement has been around for years, enforcement of sanctions against non-compliant companies was almost unheard of – until now. As of 2026, we learned that a number of companies has been receiving the administrative sanctions, showing that BKPM is now taking a much more serious and proactive approach to compliance. It should be noted that the failure to submit LKPM in the reporting deadlines could lead to administrative sanctions such as written warnings, limitations on business activities, suspension, or even revocation of business licenses.

When is the LKPM Reporting Period?

LKPM reporting period may vary, depending on the companies’ business scale.

Small business scale must submit reports twice a year:

Semester I no later than July 15; and

Semester II no later than January 15 of the following year.

Medium and large business scale must submit reports quarterly:

Quarter I: 1-15 April;

Quarter II: 1-15 July;

Quarter III: 1-15 October; and

Quarter IV: 1-15 January of the following year.

Conclusion:

To avoid administrative sanctions from BKPM, we encourage all companies to take the proactive steps to ensure full compliance.

For any queries, please contact:

vincent@lhbmlaw.com

info@lhbmlaw.com