Why Business Owners Need Background Check in Indonesia

Why Business Owners Need Background Check in Indonesia

  • InCorp Editorial Team
  • 29 May 2023
  • 4 minute reading time

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.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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Disclaimer: The information is provided by PT. 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.

Frequent Asked Questions

Before entering into any agreement with our clients, we sign a data protection agreement to ensure that all data are kept confidential across all involved activities.

According to the Indonesia’s Manpower Law employers can hire the Indonesian talents either under a temporary or a permanent contract.

  • Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates
  • Increase the competence of the workers by giving or encouraging job training
  • Follow the procedures of termination (Terminating an employee in Indonesia can be a long, tedious, and expensive process.)
  • Observe the 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 the work permits for foreign employees

As a leading recruitment outsourcing provider in Indonesia, InCorp offers comprehensive services. We will conduct an in-depth background check on candidates to verify references and qualifications.

Cost reduction, hiring time reduction, hire quality are among the most noteworthy benefits your company can enjoy.