Home Blog Customer Due Diligence in Indonesia: Everything You Need to Know Uncategorized Customer Due Diligence in Indonesia: Everything You Need to Know InCorp Editorial Team 3 July 2025 3 minutes reading time Table of Contents Types of Due Diligence in Indonesia Steps for Conducting Customer Due Diligence in Indonesia with InCorp Indonesia Customer due diligence, or CDD, is critical for financial establishments and companies that intend to work with clients long term in Indonesia. It is also an imperative skill that all analysts involved in Countering the Financing of Terrorism (CFT) or Anti-Money Laundering (AML) should possess. What is customer due diligence and why is it so important then? Companies, especially financial institutions, carry out customer due diligence to gain insights on potential clients. These insights enable organisations to know how much risk a client is presenting, and if they could be a potential bad actor or fraud. In many countries, it is a legal requirement to conduct customer due diligence when an institution is establishing business relations with a prospective customer during the induction stage. Therefore, as financial frauds are commonplace globally, it is critical to perform customer due diligence in Indonesia as well. Carrying out an effective customer due diligence in Indonesia can go a long way to prevent potential downfalls when an individual or a company turns out to be litigious or dishonest. Being able to detect potential red flags through a CDD can also preclude organisations from tremendous stress and losses. Types of Due Diligence in Indonesia The three main categories of customer due diligence in Indonesia depend on the level and depth of investigation. InCorp Indonesia offers an integrated service that is customised based on your business needs. Standard customer due diligence Simplified customer due diligence Enhanced customer due diligence Steps for Conducting Customer due diligence is about getting access to client’s information data and verifying them. The following are steps that most organisations adhere to as a standard flow of customer due diligence: 1. Obtain important client’s information and data Full name of customer Residential address Birthplace and date of birth Contact number Email address Nationality Gender Occupation Marital status Signature sample 2. Screen and analyse the acquired information and data Evaluate the risks associated with the data. For example, check if the client’s country of residence is of high risk Decide the level of customer due diligence, i.e. standard CDD, simplified CDD, or enhanced CDD. 3. Follow the correct level of customer due diligence depending on a client’s business process Enhanced customer due diligence is suitable for more complicated cases such as a politically-exposed company or individual Simplified customer due diligence is sufficient for clients with low transaction values 4. Conduct ongoing monitoring of clients even if you have already established business relationships with them Determine the change of client’s profile Verify if they are involved in high-risk transactions or commit frauds Know if they comply with legal regulations constantly Ensure all collected client’s data are up-to-date Customer Due Diligence in Indonesia with InCorp Indonesia InCorp Indonesia’s customer due diligence service helps you evaluate and investigate business opportunities and potential risks. With our assistance, we enable you to flag the legal risks that might turn up from a customer’s financial obligations, contracts, or criminal records. The investigation further extends into all relevant aspects of the past, present, and predictable future of your target customer. Our customer due diligence service is comprehensive, in-depth, and thorough. All customer’s backgrounds will be checked and verified. If there are gaps in the customer’s history we can’t fill, we will also include these discrepancies that may cause potential legal issues in our reports. If you are interested in InCorp Indonesia’s customer due diligence service in Indonesia; or if you have some questions regarding due diligence, contact us via the form below. 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 What is the minimum shareholder requirement to incorporate a PT? The minimum number of shareholders to incorporate a PT is two How long does it take to set up a PMA company, and how soon can it begin commercial operations? Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process. What is the difference between PT and CV? You can find the difference below: PT: limited liability company (shareholders are not legally liable for company liabilities) CV: a proprietary company where liability falls on the shareholders What other things should be considered when hiring local and foreign employees in Indonesia? There are a few things to consider, such as: Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates Increase the competence of workers by giving or encouraging job training. Follow the termination procedures (Terminating an employee in Indonesia can be long, tedious, and expensive. Observe working hours, holidays, and overtime regulations Give mandatory employee benefits, including social security and health insurance Withhold only the right amount of income tax on behalf of the employees Follow the wages and other benefits outlined by the law Process work permits for foreign employees Get in touch with us. 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Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Uncategorized Benefits of Hiring Temporary Staff for Your Business in Indonesia Read more Starting an IT Company in Indonesia During the Pandemic: An Insight From the Real Expert Read more Must-Know Changes in Payroll in Vietnam (2019) Read more