LKPM reporting errors are one of the most common compliance risks faced by foreign-owned companies in Indonesia. LKPM, or Laporan Kegiatan Penanaman Modal, is a mandatory investment activity report submitted through the OSS RBA system to the Ministry of Investment. We often see that small administrative mistakes lead to warnings, reporting rejections, or even business license suspension. The good news is that these mistakes are entirely preventable when you understand where companies usually go wrong.
1. Late LKPM Submission
The most frequent issue is missing the LKPM deadline. LKPM reports must be submitted no later than the 15th of the month following the reporting period. Many companies assume that submitting after the deadline is acceptable as long as the report shows “received” in OSS. This assumption is incorrect. Late submissions are automatically flagged as non-compliant.
To avoid this, you should treat LKPM as a fixed compliance calendar item. Prepare investment and employment data before the reporting period ends, not after. Internal reminders or external compliance support can significantly reduce this risk.
2. Incomplete KBLI Coverage
Another common mistake is failing to report all KBLI codes listed under your NIB. OSS requires LKPM reporting for every KBLI and every business location, including supporting or secondary activities. If your company operates two locations with three KBLI codes each, you must submit six LKPM entries.
You can avoid this error by reviewing the OSS LKPM preview page carefully. Every KBLI displayed must be reported, even if the activity has not yet generated revenue.
Also read: Can LKPM Non-Compliance Freeze Your NIB in Indonesia?
3. Incorrect Investment Realization Data
Many foreign companies mistakenly report cumulative investment values instead of period-specific realization. LKPM requires you to report only the new investment made during the reporting period. Reporting accumulated figures often leads to rejection or correction requests.
Always reconcile LKPM data with your internal financial records. Fixed capital, working capital, and manpower figures must reflect only the current reporting period.
4. Data Inconsistencies Across Systems
Mismatch between LKPM data and BPJS, payroll, or tax filings is a red flag for regulators. Another overlooked issue is failing to submit nihil reports when there is no activity. Both situations can trigger audits or delays.
You should ensure that employee numbers, salary data, and tax reports are aligned. If there is no business activity, submit a nihil LKPM report rather than skipping the submission.
Also read; Steps to Appeal or Resolve LKPM Late Filing Sanctions
5. Not Monitoring LKPM Approval Status
Many companies assume their obligation ends once the LKPM status shows “received.” In reality, LKPM reports must reach “approved” status after verification. Reports marked “needs correction” that are left unattended can be treated as non-filed.
Assign a dedicated person or team to monitor OSS regularly. Address correction notes promptly using the OSS issue field to avoid escalation.
Repeated LKPM mistakes can lead to warning letters, operational restrictions, or license revocation. If you want a deeper understanding of enforcement consequences, we recommend reading our detailed guide on penalties and sanctions for late or incorrect LKPM reporting for foreign companies in Indonesia. For a broader compliance overview, our article on LKPM reporting for PMA and foreign companies in Indonesia provides essential context.
From our experience assisting foreign investors, LKPM compliance is not just about reporting. It is about data accuracy, regulatory awareness, and consistent monitoring. This is where structured compliance support becomes valuable.
Our team at InvestinAsia provides end-to-end Indonesia LKPM reporting services. We help you prepare accurate data, ensure full KBLI coverage, submit on time, and monitor approval status in OSS. With our support, you reduce compliance risk and stay focused on growing your business in Indonesia.
If you want certainty and clarity in your LKPM obligations, working with an experienced compliance partner is the most practical next step.
Contact us now for FREE consultation and get a special offer!
FAQs About LKPM Reporting Mistakes
What is the most common LKPM reporting mistake?
Late submission is the most common issue. Submitting after the 15th deadline automatically triggers non-compliance, even if the report is marked as received.
Do I need to report LKPM if there is no activity?
Yes. You must submit a nihil LKPM report if there is no investment or operational activity during the period.
Does LKPM require reporting for all KBLI codes?
Yes. All KBLI codes listed in your NIB and shown in OSS must be reported, including supporting activities and multiple locations.
Is “received” status enough for LKPM compliance?
No. LKPM reports must reach “approved” status. Reports that require correction must be revised promptly.
Can incorrect LKPM data affect my business license?
Yes. Data inconsistencies and repeated errors can lead to warnings, operational suspension, or license revocation.
