One of the obligations of PMA and PMDN companies in accordance to the Investment Act is to submit their capital investment activity report on their investment realization and production known as LKPM (Laporan Kegiatan Penanaman Modal). In order to increase the monitoring of capital investment realization, the Indonesian Capital Investment Coordinating Board (BKPM) issued a Regulation of the Head of BKPM No.13 of 2009 dated 23 December 2009 as amended by a Regulation of Head of BKPM No.7 of 2010 dated 31 March 2010 concerning Guidelines and Procedures for the Control of Capital Investment Implementation (“BKPM Regulation on LKPM“).
Different from the previous one, BKPM Regulation on LKPM obliges any PMA and PMDN companies to submit the LKPM with the following requirements:
- for those who are still in construction stage, the LKPM must be submitted in every 3-month period (quarterly) and to be submitted at the latest on the 5th day of the following month. The 1st quarter is for report period from January to March, the 2nd quarter is for report period from April to June, the 3rd quarter is for report period from July to September, and the last quarter is for report period from October to December. For the companies who granted import duty exemption, they must also submit their import realization report attaching with the copy of the notification of import of goods (PIB) given approval for the release by the Directorate General of Customs and Excise;
- for the companies who already obtained Business Licence, the LKPM is to be submitted in semester with the 1st semester is for report period from January to June and the 2ndsemester is for report period from July to December and also to be submitted at the latest on the end of the following month;
- for foreign company representative office, the LKPM is to be submitted in 1 (one) time, i.e. by each of the end of the year;
- the companies whose capital investment activity cover more than 1 (one) municipality/city, the LKPM must be submitted for each of the municipality/city;
- the companies whose capital investment activity consist of more than 1 (one) business fields, the submission of the LKPM must be made based on the business field concerned;
- for the companies who already completed the merger, the surviving company has to submit the LKPM for all capital investment activities as the result of the merger;
- the companies which are located in free trade and free port zone as well as in specific economic zone, the LKPM must be submitted to the each of the head of the zone concerned with c.c. to Head of BKPM .q. Deputy for Control of Capital Investment Implementation;
- the companies must submit the LKPM in accordance with the forms as provided for in the BKPM Regulation on LKPM, either by online through SPIPISE (Electronic Investment Licensing and Information Services System), by email to email@example.com, by facsimile or by hand delivery to the Head of BKPM c.q. Deputy for Control of Capital Investment Implementation;
- the company must also appoint a responsible person to coordinate the making of the LKPM and the name of the person appointed must be submitted on written to BKPM using a form as provided in the BKPM Regulation on LKPM.