Due Diligence and Background Check in Indonesia

Posted 9.05. 2017 by Cekindo / Last update on 30.05. 2017

Due Diligence and Background Check in Indonesia Review by Siti Junima Faradella on 9. 5. 2017 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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The Overview

Performing deep screening, audit, and investigation toward any company or employee is highly important. It’s needed to assure that the business is run legally and professionally. Therefore, due diligence and background check need to be done before any form of new contracts, agreements, or acquisitions is signed. By completing the due diligence and background check, you will be able to assess the credibility of the company or partner you want to work with or acquire.

 

What is Due Diligence?

Basically, due diligence is an thorough investigation effort of a certain company, business or person, prior to contract or agreement signing based on a certain standard of care. Having performed this effort, you will receive a report stating both general and specific data and information related to the targeted company, business, or person.

Read also: Do You Check Your Business Partner’s Background?

 

What is Background Check?

On the other hand, the background check will allow you to check the crucial background information of the targeted company, business, or person, including its criminal records, credits and financial records, along with commercial records.

Read also: Why Does a Businessman Need a Background Check? 

 

In short, the report of due diligence and background check that you receive will cover (but not limited to) the following subjects:

  1. Business Highlights
  2. Risk Assessment
  3. Financial Information
  4. Legal History/Related legal events
  5. Management Structures
  6. BoD Structures
  7. Business Relationships and Related parties
  8. Activity features (incl. Company reputation, Suppliers and Customers)

Further details can be found in the following heading.

 

The Result or Report of Due Diligence and Background Check

The output of these actions can be obtained in a set of accurate data and factual information that is written in a form of report tailored specially for you and your company’s interest. The contents are almost always consisted of evidences and materials that cannot be attained by using common research attempt done by general public. Often, the report also contains financial, credit, and assets information from the targeted company. Thus, foreign companies who want to start partnership with local entity will see it as a prerequisite step before deciding further cooperation.

Read also: Local Partner Selection in Indonesia 

Another important feature of doing these due diligence and background check is the ability to see the potential of the acquired companies or venture partners for any corruption or bribery risks. This includes the target company’s histories, past contracts and agreements, third parties involvements, etc. In addition, other potential of risks are also assessed and reported to you so that thorough data can be available to access, for example the target company’s management structure, including the data of the past and present personnel.

Check: Audit and Review Service

The last but not least, you may also need the data of all the related parties who do business with the target company, in historical list. This data will give you insight of the targeted company. It will also show you potential risks or problems that have occurred previously or may happen in the future. Included in the report is the information of the business partners, target customers, suppliers, etc.

Having all of the information in your hand, you will be able to determine whether or not the targeted company or possible business partner is eligible enough to be considered as a healthy business or venture partner in the future.

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How Cekindo Can Help You

Cekindo has committed to help its clients to get the best advantage of doing businesses in Indonesia. Cekindo can provide you thorough, accurate, detail, and factual reports on due diligence and background checks for your best interests. You will reap the advantages of good quality report that will help you to make strategic business decisions.

The report is specially tailored for your company. It means that Cekindo can provide the data and information that you truly need. We also assure that two ways communication and privacy also become our great concerns. We can guarantee that the information pass during the process remains protected.

Contact us for further inquiries or questions. Cekindo provides you a wide range of corporate secretarial services which beneficial for your business in Indonesia. The service is including due diligence and background check in Indonesia.

References:

https://en.wikipedia.org/wiki/Due_diligence

https://en.wikipedia.org/wiki/Standard_of_care

http://integrity-indonesia.com/due-diligence/

https://en.wikipedia.org/wiki/Background_check

 



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