Many foreign investors focus intently on setting up their PT PMA, then overlook one of the simplest ongoing duties that keeps it in good standing: the LKPM (Laporan Kegiatan Penanaman Modal), or Investment Activity Report. Missing it is among the most common — and most avoidable — compliance lapses for new investors.

What the LKPM is

The LKPM is a periodic report that a PT PMA submits to the Investment Coordinating Board (BKPM) through the OSS system. It tells the authorities how the company's approved investment is actually progressing — capital realised, employment created, and the stage of the project.

It is not a tax filing and not an audit. It is Indonesia's way of tracking whether the investment it approved is being carried out as planned, in good faith.

When it must be filed

  • Reporting is generally quarterly for most companies, with deadlines after each period
  • Some larger or operational companies report on a defined schedule set by the authorities
  • The obligation begins early — it applies even while the company is still in the construction or pre-operational stage

Why it genuinely matters

  • It keeps your company in good standing with BKPM
  • It demonstrates that your investment commitment is real and being honoured
  • A consistent reporting record supports future licensing, expansion, and incentive applications
The LKPM is a quiet test of good faith. A company that reports honestly and on time signals to Indonesia that it is exactly the kind of investor the country opened its doors to.

Staying compliant

  1. Know your reporting periods and deadlines from the outset
  2. Keep accurate records of realised investment and employment
  3. File even "nil" or early-stage reports — silence is treated as non-compliance
  4. Treat the LKPM as part of operating responsibly, not as an afterthought

Repeated failure to file the LKPM can lead to warnings and, ultimately, sanctions on your business licences. The good news is that it is entirely manageable with a little discipline. Grafasco helps inbound investors keep their LKPM and wider reporting current, so their standing with Indonesian authorities stays beyond question.