As we enter the first week of July 2025, a critical and non-negotiable deadline looms for all foreign investment companies (known as PT PMA) in Indonesia. The submission period for the Q2 2025 Investment Activity Report (Laporan Kegiatan Penanaman Modal – LKPM) is currently open and closes definitively on July 10, 2025.
This is not a routine administrative task; it is a mandatory legal obligation. Failure to comply on time can lead to severe sanctions that can jeopardize your business operations.
This guide provides a clear and concise overview of what you need to do right now to ensure your company remains in good standing.
What is the LKPM and Who Must Report?
The LKPM is a mandatory report submitted through the Online Single Submission (OSS) system to the Indonesian Ministry of Investment / Investment Coordinating Board (BKPM). Its purpose is for the government to track the progress and realization of approved foreign investments.
A common misconception is that only operational companies need to report. This is incorrect. Every company established as a PT PMA is legally required to submit an LKPM report every quarter, even if it is still in the construction phase or has not yet generated revenue.
The Stakes: Consequences of Late or Non-Reporting
The Indonesian government takes this reporting requirement very seriously. According to prevailing regulations, failing to submit your LKPM report by the July 10 deadline can result in a cascade of administrative sanctions, including:
- Written or Online Warnings: The first official notice of your non-compliance.
- Temporary Stoppage of Business Activities: An order to halt your operations.
- Freezing of Business Licenses: Your permits are suspended, rendering you unable to conduct business legally.
- Revocation of Business Licenses: The most severe penalty, where your right to operate in Indonesia is cancelled.
These are not idle threats. The automated OSS system makes tracking non-compliant companies easier than ever for the authorities.
A Simple Checklist for Your Q2 2025 Report
To submit your report, you will need to have specific data on hand regarding your company’s activities from April 1 to June 30, 2025. Be prepared with:
- Investment Realization Data: Details on capital spent, including fixed capital (land, buildings, machinery) and operational capital.
- Manpower Data: The number of Indonesian and expatriate employees currently working for the company.
- Production Data (if applicable): Information on goods or services produced and their value.
- Problems Encountered: A section to report any challenges your company is facing (e.g., related to logistics, regulations, or manpower).
The Deadline is Now. What Should You Do?
With only a few days remaining, swift action is essential.
If you have an experienced internal compliance team, ensure they have all the necessary data and are prioritizing the submission immediately.
However, if you are a new investor, are managing a lean operation, or are simply unsure about the intricacies of the reporting process, now is not the time to risk errors. A mistake in data entry or a misunderstanding of the requirements can lead to a rejected report and a missed deadline.
Seeking immediate professional assistance is the most secure way to guarantee compliance.
Meeting the LKPM deadline is a fundamental aspect of maintaining a healthy and legal business in Indonesia. It demonstrates your company’s commitment to transparency and regulatory compliance.
Don’t wait until the last minute. The risk of sanctions is too great to ignore.
If you need urgent assistance ensuring your Q2 2025 LKPM report is prepared and submitted correctly and on time, contact Accura Indonesia today. Our compliance team is ready to provide immediate support to protect your investment and secure your company’s good standing.