Understanding PT PMA Compliance
Operating a PT PMA in Indonesia comes with ongoing compliance obligations. Maintaining compliance is essential to avoid penalties, keep your business licenses active, and ensure smooth operations.
Key compliance areas include:
- LKPM: Quarterly investment activity reports to BKPM
- Tax: Monthly and annual tax filings and payments
- Financial: Annual financial statements and audits
- Corporate: Annual meetings and statutory filings
Compliance Calendar
| Deadline | Requirement |
|---|---|
| Quarterly | LKPM Report Investment Activity Report to BKPM through OSS system |
| Monthly (20th) | PPh 21 Report Employee income tax withholding report and payment |
| Monthly (End) | VAT Report Monthly VAT (PPN) return if registered as PKP |
| Annually (April 30) | Corporate Tax Return Annual SPT Badan (corporate income tax return) |
| Annually (April 30) | Financial Statements Audited financial statements (for qualifying companies) |
| Annually | RUPS (Shareholders Meeting) Annual general meeting to approve financials |
LKPM Reporting Process
LKPM (Laporan Kegiatan Penanaman Modal) is one of the most important compliance requirements for PT PMA. Here's how to submit:
Login to OSS System
Access the OSS (Online Single Submission) portal with your company credentials.
Navigate to LKPM Section
Find the LKPM reporting section under your company's investment license.
Complete the Form
Fill in investment realization, employment data, production/revenue figures, and any issues encountered.
Submit Report
Review and submit the report. You'll receive a submission receipt.
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Tax Compliance Requirements
| Tax Type | Rate | Frequency |
|---|---|---|
| Corporate Income Tax (PPh Badan) | 22% | Annual return + quarterly installments |
| Employee Withholding (PPh 21) | Progressive 5-35% | Monthly |
| VAT (PPN) | 11% | Monthly |
| Withholding Tax (PPh 23/26) | 2-20% | Monthly |
Financial Statement Requirements
All PT PMA companies must maintain proper financial records and prepare annual financial statements. Requirements vary based on company size:
Standard Companies
- Annual financial statements
- Balance sheet & income statement
- Submitted with annual tax return
Large Companies (Audit Required)
- Assets > IDR 50 billion
- Managing public funds
- Must use registered public accountant
Penalties for Non-Compliance
Take Compliance Seriously
Failing to meet compliance requirements can result in serious consequences for your PT PMA business:
- • NIB (Business License) suspension or revocation
- • Tax penalties and interest charges (2% per month)
- • KITAS/work permit issues for foreign employees
- • Inability to access banking and government services
- • Criminal liability for directors in severe cases
Frequently Asked Questions
LKPM (Laporan Kegiatan Penanaman Modal) is a mandatory investment activity report that all PT PMA companies must submit quarterly to BKPM through the OSS system. It reports on investment realization, employment, production, and any operational issues. Failure to submit LKPM can result in sanctions including NIB revocation.
Missing LKPM deadlines can result in warnings, suspension of OSS services, and in severe cases, revocation of your NIB (business license). BKPM takes LKPM compliance seriously as it's used to monitor foreign investment activities in Indonesia.
Audited financial statements are required for: (1) public companies, (2) companies that manage public funds, (3) companies with assets > IDR 50 billion, or (4) companies required by their articles of association. Other companies may submit unaudited statements but should maintain proper bookkeeping.
Key deadlines: Monthly PPh installments (15th of following month), Monthly VAT returns (end of following month), Annual corporate tax return (April 30 or 4 months after fiscal year end). Extensions may be available for the annual return.
Yes, many PT PMA companies outsource their compliance to professional service providers. This includes accounting/bookkeeping, tax filing, LKPM reporting, and corporate secretarial services. This is especially common for smaller companies without in-house finance teams.
PT PMA companies must maintain: financial records and supporting documents (10 years), employment records, tax documents and receipts, corporate records (minutes, resolutions, shareholder register), and business licenses and permits. Records must be available for government inspection.