24 October, 2018
The current BKPM regulation (BKPM Regulation 7/2018) requires all business actors to submit a quarterly LKPM for each line of business or project location for which the investment is more than Rp500 million (so currently the LKPM reporting obligation is not only for foreign investment companies, and not based on whether the foreign investment companies have or have not obtained a business license). For lines of business or project locations for which the investment is Rp500 million or less, the business activity reporting is based on the relevant technical regulations.
The LKPM must be submitted to BKPM site, the relevant provincial-level investment board and the relevant regency/municipality-level investment board.
There are two forms of LKPM. One form is for lines of business that have not yet been commercially operated and the other form is for lines of business that have been commercially operated. Both forms are attached in the current BKPM regulation.
The LKPM is made for each line of business and each project location, and must be submitted with the following deadline:
- 1st quarter: no later than the 10th of April of the relevant year
- 2nd quarter: no later than the 10th of July of the relevant year
- 3rd quarter: no later than the 10th of October of the relevant year
- 4th quarter: no later than the 10th of January of the following year
Business actors that are ready to operate commercially are required to submit a statement letter confirming the readiness, the form of which is also regulated in the current BKPM regulation.
For further information, please contact:
Cahyani Endahayu, Partner, Baker & McKenzie
cahyani.endahayu@bakermckenzie.com
