Investment Activity Report
Investment Activity Report or LKPM is a report on the development of business activities, both those that are not yet in production/commercial operations or those that are already, which include the realization of Investment, realization of labor, realization of production including export value, partnership obligations and other obligations related to the implementation of Investment submitted by individual business actors and business entities online through the Supervision subsystem of the OSS system
To improve the investment climate, improve investment control procedures and improve protection and ease of doing business, the Government has passed Law No. 11 concerning Job Creation (“UU Cipta Kerja”). It's not enough to stop there, so that the provisions contained in the Job Creation Law run effectively, the Government is also moving quickly by issuing a number of implementing regulations. Among these are Government Regulation Number 5 of 2021 concerning Implementation of Risk-Based Business Licensing (“PP 5/2021”); Government Regulation Number 7 of 2021 concerning Ease, Protection, and Empowerment of Cooperatives and Micro, Small and Medium Enterprises (“PP 7/2021’); and BKPM Regulation Number 5 of 2021 concerning Guidelines and Procedures for Supervision of Risk-Based Business Licensing (“BKPM Regulation 5/2021”). One form of investment control is monitoring the obligation of business actors to report LKPM. The obligation to report LKPM is stated in Article 15 letter c of Law Number 25 of 2007 concerning Investment ("Law 25/2007"). It is hoped that through LKPM which is routinely reported by business actors, the government can obtain valid data to formulate effective policies to improve the investment climate and ease of doing business in Indonesia.
The obligation to submit LKPM is also regulated in the Regulation of the Head of BKPM Number 13 of 2009 concerning Guidelines and Procedures for Controlling the Implementation of Investment (“Perka BKPM 13/2009”) which has undergone several changes, until finally BKPM Regulation Number 6 of 2020 concerning Guidelines and Regulations applies. Investment Control Procedures (“BKPM Regulation 6/2020”).
However, after the issuance of the Job Creation Law, BKPM Regulation 6/2020 has been revoked and declared invalid by BKPM Regulation 5/2021 which also requires business actors to report to LKPM. Therefore, to understand the criteria for companies that are required to report LKPM after the enactment of the Job Creation Law, you can pay attention to the following points:
Determining the Scale of Business Actors
Through PP 7/2021 the criteria for business actors have changed. This latest regulation divides the types of business actors based on the amount of business capital or annual sales, the details are as follows:
· Micro Business: Have a maximum business capital of Rp. 1 billion excluding land and buildings for business or have annual sales of a maximum of Rp. 2,000,000,000.00 (two billion rupiah)
· Small business: Having a business capital of more than Rp. 1,000,000,000.00 (one billion rupiah) up to a maximum of Rp. 5,000,000,000.00 (five billion rupiah) excluding land and buildings for business or having annual sales of more than Rp. 2 ,000,000,000.00 (two billion rupiah) up to a maximum of Rp15,000,000,000.00 (fifteen billion rupiah)
· Medium Business: Having a business capital of more than IDR 5,000,000,000.00 (five billion rupiah) up to a maximum of IDR 10,000,000,000.00 (ten billion rupiah) excluding land and buildings for business or having annual sales of more than IDR 15. 000,000,000.00 (fifteen billion rupiahs) up to a maximum of Rp.50,000,000,000.00 (fifty billion rupiahs)
REPORTING PERIOD
For small business actors, LKPM is submitted every 6 months (semester):
• Semester I : Reporting on 1-10 July
• Semester II : Reporting on January 1-10 of the following year
For medium and large business actors, LKPM is submitted every 3 months (quarterly):
• Quarter I : Reporting April 1-10
• Quarter II : Reporting on 1-10 July
• Quarter III : Reporting on October 1-10
• Quarter IV : Reporting on January 1-10 of the following year
LKPM IS NOT MANDATORY FOR
• Micro Business Actors
• Business actors with oil and gas business sectors, banking, non-bank financial institutions, and insurance
https://dpmptsp.pringsewukab.go.id/detailpost/apa-itu-lkpm
https://dpmptsp.cianjurkab.go.id/post/read/230/catat-ini-kriteria-pelaku-usaha-yang-dunia-lapor-lkpm.html