Home Blog Why Business Owners Need Background Check in Indonesia Human Resource | Recruitment | Secretarial Services Why Business Owners Need Background Check in Indonesia InCorp Editorial Team 29 May 2023 4 minutes reading time Table of Contents Education Check Criminal Background Check Identity and Address Check Previous Employment Check Credit Check Advantages of Background Checks in Indonesia When you are running and develop your business in Indonesia, it is very important that your company is supported by workers with experience and proven practices, have a good track record, and assumed not bring troubles to your company in the future. This can be done with a background check in Indonesia. Surely an organisation / company has a goal to be achieved. Achievement of these objectives can be achieved by utilising existing resources. If a company wants to advanced, then the thing to be fixed first is its human resources because the most valuable assets of the company is its employees. In this situation, a background check and due diligence investigation on employees in Indonesia are an effective way to discover potential issues that might affect your business later on. Through background checking, all applicants are screened and selected. With trustworthy employees, the business could be save from the backfire of hiring bad employees that will incur the future losses of petty and major crimes and bad reputation from scamming employees. Background check and due diligence investigation are not expressly regulated by Indonesian employment laws, and certain background checks are subject to the consent of the applicant in practice. The most common background checks involve those on an applicant’s educational credentials, criminal background check, character reference check and so on. Any checks undertaken must be appropriate and proportionate to the position being applied for and must not discriminate or discourage people from applying. There are specific points to note in relation to particular background check in Indonesia: Education Check Criminal Background Check Previous Employment History Identity and Address Check Credit Check Character Reference Check Education Check The practice of conducting effective education background verification for prospective employees has exploded in the workforce over the last 15 years. The costs of not performing a proper degree check can be costly for employers due to unqualified workers and resume fraud. Criminal Background Check Involve checking the past criminal history to see if there have been any criminal activities in the past. This information can be procured from either the public courtrooms or the police department. Driving records should also be checked of people who are being considered for hiring in positions where they have to drive a vehicle. These records provide important information such as his driving license details, any accidents the person may have been involved in, or if the individual has even been caught for driving under the influence, etc. Background checks also include social security number checks, previous employment checks. Identity and Address Check Registered personal address of the person is checked. Current and previous address can also be checked in case of any ambiguity. Address check is used by businesses to ensure that users or customers provide information that is associated with the identity of a real person. The service may verify the authenticity of physical identity documents such as a driver’s license or passport, called documentary verification, or may verify identity information against authoritative sources such as a credit bureau or government data, called non-documentary verification. Previous Employment Check Employment History Verification is conducted by contacting previous employers to verify an applicant’s job title, tenure, and salary claims. We ask about the applicant’s reasons for leaving and eligibility for rehire. We also ask if there are problem areas that a prospective employer should be made aware of. Work History Verification are an important part of a thorough background check. Credit Check Are done on people that are seeking employment in the financial positions. The Fair Credit Reporting Act requires proper credit checks prior to employing people. It becomes all the more important if the position requires dealing with huge amounts of money. There are two types of credit checks – one is the consumer credit reports and the other, being investigative consumer credit reports. An analytical credit report consists of a written report as well as interviews with close people such as their neighbors and friends. Other background checks include social security number check. Advantages of Background Checks in Indonesia Following are the major advantages of background check in Indonesia: Enhance productivity Lower employee turnover Protect assets and better control employee theft Ensure employees? sense of security and peace of mind Avoid workplace accidents Limit insurance cost increases Control absenteeism Contain healthcare costs If you need further information on background check, feel free to contact InCorp Indonesia. Our experienced team will assist you in doing a background check and due diligence in Indonesia to make sure that your company is supported by qualified and eligible workers. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions Can an individual or a business organization be a shareholder in a PMA company, and is there a minimum number required? A limited liability corporation is required by Indonesian company law to have two or more shareholders, who may be either a legal entity or an individual. The foreign investor must find a second shareholder to own shares in the PMA firm for investments that are 100% open, which could be an affiliated party. How does InCorp’s recruitment outsourcing mechanism work? As a professional executive search agent, InCorp helps promote job vacancies, screen, and shortlist applicants, conduct pre-interviews, and arrange final interviews with applicants. This can also be topped up with an employee background check. How does the HR outsourcing mechanism work? As your HR outsourcing provider, InCorp signs a standard employment agreement with an outsourced employee. After this, we take care of the employee’s payroll in coordination with your company. InCorp is also responsible for paying the salary to the employee. How many employment and hiring options exist in Indonesia? According to Indonesia’s Manpower Law, employers can hire Indonesian talents under temporary or permanent employment. Get in touch with us. 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