Introduction
The Indonesian government, through the Investment Coordinating Board (BKPM), has issued BKPM Regulation No. 5 of 2025 (Perka BKPM 5/2025) on Guidelines and Procedures for Risk-Based Business Licensing and Investment Facilities via the Online Single Submission (OSS) system.
This regulation aims to provide greater legal certainty and convenience for businesses managing their licenses — from application and issuance to modification and renewal — while reinforcing efficient investment supervision.
Key Update: Longer LKPM Reporting Period
A major highlight of Perka BKPM 5/2025 is the extension of the LKPM (Investment Realization Report) reporting period.
Previously, many companies — especially Foreign Investment Companies (PMA) — struggled to meet strict reporting deadlines.
The new rule gives businesses more time to collect, verify, and report investment activities through the OSS-RBA system.
This change is expected to:
- Provide flexibility for preparing accurate data;
- Improve report reliability and completeness; and
- Support smoother government supervision and evaluation.
By extending the timeline, BKPM strengthens compliance quality while maintaining transparency in investment reporting.
Purpose and Expected Impact
The longer reporting period is part of BKPM’s mission to make Indonesia’s investment ecosystem simpler, fairer, and more accountable.
This policy helps businesses by:
- Reducing administrative pressure on companies managing multiple projects or locations;
- Simplifying compliance and data submission procedures; and
- Encouraging accurate reporting that truly reflects real investment progress.
Overall, the extension promotes a business-friendly environment while keeping regulatory discipline intact — a balance essential to sustainable investment governance.
Implications for Investors
For investors and PMA companies, the new rule means improved flexibility and workflow efficiency.
Firms can better coordinate internal teams — from finance to compliance — when preparing periodic reports.
This minimizes rushed submissions and potential data inconsistencies.
The adjustment also aligns LKPM reporting with quarterly and semiannual business cycles, ensuring smoother integration with financial reporting systems.
Investors are encouraged to keep using the OSS-RBA portal for filing and monitoring LKPM submissions in line with the new deadlines.
Conclusion
BKPM Regulation No. 5 of 2025 represents another important step in Indonesia’s effort to modernize business licensing and reporting.
By extending the LKPM reporting period, the government reinforces its support for investors through improved flexibility, transparency, and compliance efficiency.
This reform ensures that both domestic and foreign investors can focus on growth — while still maintaining accountability within Indonesia’s risk-based investment framework.