The reporting period for the Second Quarter (Q2) 2026 Investment Activity Report (Laporan Kegiatan Penanaman Modal or LKPM) is now open. Companies conducting business activities in Indonesia through the OSS system should review their reporting obligations and ensure that any required LKPM submissions are completed on time.
LKPM is one of the key compliance requirements under Indonesia’s investment regulatory framework. Through LKPM reporting, the government monitors the implementation and progress of investment activities, including business operations, employment, and investment realization.
The obligation to submit LKPM is generally based on:
- Law No. 25 of 2007 on Investment, which establishes the rights and obligations of investors in Indonesia;
- Government Regulation No. 5 of 2021 on Risk-Based Business Licensing, which forms part of Indonesia’s OSS licensing framework; and
- Regulations issued by the Ministry of Investment/BKPM governing the implementation and monitoring of investment activities through the OSS system.
Who Is Required to Submit LKPM?
In general, businesses that have obtained a Business Identification Number (NIB) through the OSS system may be required to submit periodic LKPM reports, depending on their business activities and licensing status.
This commonly includes:
- Foreign-owned companies (PT PMA);
- Indonesian limited liability companies (Local PT);
- Companies holding OSS-based business licences; and
- Other business entities conducting investment activities in Indonesia.
Because reporting obligations can vary depending on the nature and scale of the business, companies should periodically review their compliance status to ensure that all reporting requirements are met.
What Information Is Included in an LKPM?
An LKPM provides information regarding the implementation of a company’s investment activities during the reporting period. The report typically includes:
- investment realization and capital expenditure;
- workforce and employment data;
- operational or production activities;
- fulfilment of licensing commitments and business requirements; and
- challenges or obstacles affecting business operations.
Accurate reporting is important, as the submitted information forms part of the government’s investment monitoring and evaluation process.
Q2 2026 Reporting Period
For the second quarter of 2026, covering the period from April to June 2026, the LKPM reporting window is:
1 July 2026 – 15 July 2026
Reports must be submitted electronically through the OSS Indonesia system before the reporting deadline.
Companies are encouraged to prepare their supporting information in advance, as incomplete or inaccurate submissions may require revisions and could delay compliance.
Consequences of Non-Compliance
Failure to submit an LKPM may result in administrative sanctions imposed through the OSS system.
Depending on the circumstances, sanctions may include:
- written warnings;
- restrictions on certain OSS services;
- suspension of licensing-related services; and
- further administrative measures for continued non-compliance.
Maintaining timely LKPM reporting helps ensure that future licensing processes, amendments, and business activities can continue without unnecessary administrative obstacles.
How Bali Exception Can Assist
Many companies find LKPM reporting challenging due to changing business activities, investment realization calculations, or uncertainty regarding reporting requirements.
Our legal team assists clients with:
- determining whether LKPM reporting is required;
- reviewing investment and operational data;
- preparing and filing LKPM reports through OSS;
- identifying potential compliance issues; and
- providing ongoing corporate compliance support for PT PMA and local PT companies.
If your company requires assistance with Q2 2026 LKPM reporting or broader corporate compliance matters in Indonesia, our legal team at Bali Exception is available to help.
