Apr

24

Foreign Investor Know-How: Make Sure You Don’t Get Your Investment Activity Report Wrong or Submit It Too Late

Foreign Investor Know-How: Make Sure You Don’t Get Your Investment Activity Report Wrong or Submit It Too Late

Any foreign investor to Indonesia must submit an annual investment activity report, detailing all relevant updates regarding its investment in Indonesia subsequent to the initial investment. [1] This report needs to be filed on a quarterly basis with the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM) and is called “Investment Activity Report” ( Laporan Kegiatan Penanaman Modal – LKPM). In the LKPM, every investor must provide an update on the initial investment and the problems the investor faces.

LKPM Reporting Procedures

Investment Law, BKPM Regulation No. 7 of 2018 concerning Guidelines and Procedures of Control on the Implementation of Investment sets out every investor’s obligation to submit the LKPM on a quarterly basis. The following dates are relevant:

  • Not later than 10th April for Q1 of the relevant year;
  • Not later than 10th of July for Q2 of the relevant year;
  • Not later than 10th October for Q3 of the relevant year; and
  • Not later than 10th of January for Q4 of the previous vear.

The LKPM must be submitted through the Electronic Information and Investment License Service System (“SPIPISE”). [2]

Failure to Submit the LKPM

Many organizations are currently struggling with their operations in Indonesia as a result of the Coronavirus pandemic. Please note that despite the various measures taken by the government in your home country as well as the Indonesian government, the requirement to submit the quarterly report remains unchanged.

Failure to submit the LKPM on time leads to administrative sanctions. This includes written or online warnings, in more severe instances restrictions on business activities and, in the most severe instances, the freezing of the business activities and/or Investment Facilities [3] , or an entire revocation of relevant licenses for business activities. [4]

How Schinder Law Firm Can Assist You

Schinder Law Firm among others specializes in Foreign Direct Investment. Our team of lawyers has extensive experience all matters related to Foreign Direct Investment in Indonesia.

As such, we regularly assist our clients in the compilation and/or submission of the LKPM. We are also there for our clients when they miss the relevant time limit, as a very current case shows: a client recently reached out to us after having missed the time limit to submit

its LKPM for Q1 of 2020 (which was 10th April 2020). Because the client contacted us right away, we could swiftly get in touch with the authorities. As a result of our intervention, the client – who had previously missed deadlines – still got away with a warning only.

In case your company was late to submit its investment activity report for Q1, we highly recommend retaining professional help. The relatively low costs of assisting you with “rectifying” such earlier failure usually greatly outweigh the risk of facing restrictions.

 


[1] Art. 15 letter (c) Investment Law

[2] Art. 7 letter (c) BKPM Regulation No. 7/2018

[3] Art. 1 number 26 BKPM Regulation No. 7/2018 has defined Investment Facilities as any form of fiscal and non-fiscal incentives as well as ease of investment services, in accordance with the provisions of laws and regulation.

[4] Art. 32 sect. 1 BKPM Regulation No.7/2018

About the author:

 

BUDHIBudhi Satya Makmur

A qualified Indonesian advocate. Budhi specialises in litigation, arbitration and other contentious matters. Budhi has extensive experience in representing numerous domestic and multi-national companies before the Indonesian National Board of Arbitration (BANI) and the Indonesian courts.

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
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We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
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Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.