Pursuant to Law No. 25 of 2007 on Investment, Government Regulation No. 28 of 2025 on the Implementation of Risk-Based Business Licensing, and Regulation of the Investment Coordinating Board / Ministry of Investment No. 5 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing and Investment Facilities, as may be amended from time to time, all companies conducting investment activities in Indonesia, including Foreign Investment Companies (Penanaman Modal Asing or PMA) and Domestic Investment Companies (Penanaman Modal Dalam Negeri or PMDN), are required to submit the Investment Activity Report (Laporan Kegiatan Penanaman Modal or LKPM) through the Online Single Submission (OSS) system to the Ministry of Investment / Investment Coordinating Board (BKPM). 

For the 2026 reporting cycle, LKPM submission is required to be made during the period from 1 January to 10 January 2026, in accordance with the reporting schedule applicable under the OSS system and prevailing BKPM regulations.

LKPM reporting constitutes a core compliance obligation and serves as a regulatory monitoring mechanism for the Government of Indonesia to assess, among others, the implementation of approved business activities, fulfilment of licensing commitments, realization of investment, and overall compliance with applicable investment regulations. Depending on the company’s stage of operations, LKPM must be submitted on a quarterly or annual basis.

The LKPM report generally includes, but is not limited to, the following:

• Investment realization and capital deployment;
• Status and progress of business activities;
• Workforce absorption;
• Material challenges or constraints encountered in the implementation of the investment; and
• Business plans for the subsequent reporting period.

From a regulatory and risk management perspective, it is important to note that failure to submit the LKPM within the prescribed reporting period, or the submission of inaccurate, inconsistent, or incomplete information, may expose the company to administrative sanctions, including written warnings, restrictions on business activities, suspension, or revocation of business licenses. In addition, non-compliance may adversely affect future licensing applications, amendments to business licenses, or other corporate actions processed through the OSS system.

In light of the above considerations, and particularly given the heightened regulatory scrutiny applied to foreign investment companies, Schinder Law Firm provides comprehensive legal assistance to support clients’ compliance with LKPM 2026 reporting obligations. Our services include, among others, verification and alignment of OSS data, review and preparation of LKPM submissions, and assistance in responding to inquiries or communications from the relevant authorities, where necessary. For further consultation, please feel free to contact us at info@schinderlawfirm.com.

Author:
Dewi Susanti