Annual Company Report is Not LKPM, Its Different!
Annual company report is not LKPM, its totally different. This is second time i just write this title, not without reason. Because still i found some foreigner thinking this is LKPM, or even the annual SPT.
Please, be aware about this. Indonesian government apply for strict regulation for this matter. This October will be last periode of relaxation for this complience. Because on November they will start to implement the penalty.
What is Annual Company Report?
Annual company report based on Minister of Law regulation number 49 year 2025. This report should comes with notaries deed (General meeting shareholders legalization) and uploaded to SABH system in Directorat Jenderal of General Law Administration.
But not many people discover, what is the standart structure of this report? What the substantial should input in there?
Here me tell you again, there some substantial explanation should written there such :
- Company Profile and Corporate Information Include:
- Full legal name of the company and registered address.
- Business identification number (NIB) and relevant business licences.
- Business activities and applicable KBLI codes.
- Shareholding structure and shareholders.
- Details of the authorised, issued and paid-up capital.
- Names of the Directors and Board of Commissioners.
- Recommended introductory section.
2. Financial Statements — Legally Required, Include financial statements for the reporting year, with comparative figures for the preceding financial year:
- Balance Sheet / Statement of Financial Position.
- Profit and Loss Statement.
- Cash Flow Statement.
- Statement of Changes in Equity.
- Notes to the Financial Statements
The financial statements must be prepared in accordance with applicable Indonesian financial accounting standards.
3. Report on the Company’s Business Activities — Legally Required
This part Explain what the company actually did during the financial year, including:
- Business operations and services provided.
- Projects undertaken and their progress.
- Revenue-generating activities.
- Major transactions and business developments.
- Investments made and significant assets acquired.
- Progress against the company’s business plans.
For a property or hospitality company, this could include land acquisitions, villa or hotel construction, property management, rental activities, and operational developments.
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4. Social and Environmental Responsibility (TJSL) — Legally Required Report Section, describe the company’s social and environmental responsibility activities, where applicable, such as:
- Community development or donations.
- Employment and local community initiatives.
- Environmental protection and waste management.
- Sustainability measures.
If no activities were undertaken, state this accurately rather than inventing activities. Separate statutory reporting requirements from any additional obligations applicable to the company’s business sector.
5. Significant Issues and Business Risks — Legally Required
This part to Disclose significant issues that arose during the financial year and affected business activities, for example:
- Litigation or material legal disputes.
- Licensing or regulatory problems.
- Tax disputes or significant tax issues.
- Financial difficulties or material liabilities.
- Project delays or contractual disputes.
- Other material operational or commercial risks.
Also, you can explain the impact and, where relevant, the measures taken to address them.
6. Board of Commissioners’ Supervisory Report — Legally Required
On this part, you must describe the supervisory activities performed by the Board of Commissioners during the reporting year, including:
- Reviews of the Directors’ performance.
- Oversight of financial and operational matters.
- Meetings and significant recommendations, where applicable.
- Follow-up on material risks and compliance issues.
7. Directors’ and Commissioners’ Remuneration — Legally Required
Exactly this part will state the salaries and allowances of the Directors, and the salaries or honoraria and allowances of the Commissioners for the relevant financial year.
Or if still having no remuneration because it just business preparation periode, you can explain in here too.
Common Mistake
Like i said earlier, many people said “im done with the annual report, my accounting done this” or “ our notaries handle this”. But the funny things is, i just found them throw me LKPM and Annual tax report.
Another client come to me with proud and throw me 6 pages with no financial description, review or explanation. Its similiar close to introduction and company profiling. And the question is, are you ready if they running audit?
But im not blame them, especially foreigner. They might have experience in running business matter, but unfortunately they just so lack information and experience on complience. This is the based of problem.
So i really hope this small information will help you to understand that annual company report come with complete structure to full description of the company along a year. And tax report, LKPM report, also with financial report are the material for this annual company report.
