According to Article 1, Point 20 of BKPM Regulation No. 5 of 2021, the Investment Activity Report (LKPM) is a report on the progress of investment realization and the challenges faced by business actors, which must be prepared and submitted periodically. LKPM submission is conducted online through the OSS System and is based on business licensing data, including any data changes recorded in the OSS System during the reporting period.

Under Article 32, Paragraph (4) of BKPM Regulation No. 5 of 2021, business actors are required to submit LKPM periodically based on their level of business risk. Small business actors report every six months in a year, while medium and large business actors report every three months (quarterly). The reporting periods for small business actors include the first semester report, due no later than July 10 of the respective year, and the second semester report, due no later than January 10 of the following year. However, under Article 32, Paragraph (5) of BKPM Regulation No. 5 of 2021, micro-business actors and businesses in upstream oil and gas, banking, non-bank financial institutions, and insurance sectors are exempt from submitting LKPM.

For medium and large business actors, the reporting periods are as follows: the first quarter report, due no later than April 10 of the respective year; the second quarter report, due no later than July 10; the third quarter report, due no later than October 10; and the fourth quarter report, due no later than January 10 of the following year.

According to BKPM Regulation No. 5 of 2021, medium and large business actors must submit their first LKPM based on the issuance date of their Risk-Based Business Licensing. If the licensing is issued within the first three months of a quarter, the first report must be submitted in that quarter. However, if the licensing is issued in the fourth month, the first report must be submitted in the subsequent quarter.

The monitoring of LKPM reports submitted by business actors is conducted by BKPM, the Provincial Investment and One-Stop Services Agency (DPMPTSP), the Regency/Municipality DPMPTSP, Special Economic Zone (KEK) administrators, and Free Trade Zone and Free Port (KPBPB) authorities, according to their respective jurisdictions, from the time the business actors obtain their Risk-Based Business Licensing. This monitoring involves collecting, verifying, and evaluating periodic reports. For monitoring activities under the Central Government’s jurisdiction, the Head of BKPM may delegate authority to governors through the mechanism of deconcentration, as regulated by BKPM regulations on delegation and deconcentration guidelines in the field of investment implementation control.

In the process of verifying and evaluating data, BKPM, provincial DPMPTSP, regency/municipality DPMPTSP, KEK administrators, or KPBPB authorities may request clarifications or corrections to the LKPM from business actors. If business actors fail to make the necessary corrections, they are deemed not to have submitted their LKPM. The results of the verification and evaluation of investment realization data included in the LKPM, once approved, are stored online in the monitoring subsystem of the OSS System. BKPM then compiles national investment realization data based on the online-recorded LKPM data.

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Author:
Dewi Susanti