Why background check is important?
Employees are undeniably one of the most valuable assets in any business. In Indonesia, both small and large businesses thrive by leveraging the country's vast human resource pool. This makes background checks and due diligence essential, cost-effective measures to prevent fraud and mitigate risks.
Through a comprehensive background check or pre-employment screening, applicants are carefully vetted to verify their credibility. These checks help deter individuals from submitting forged documents or fabricated credentials and identify any embellishments or inaccurate information.
Although background checks and due diligence investigations are not explicitly regulated under Indonesian labor law, they must comply with the newly enacted Indonesian Data Privacy Laws, also known as Undang Undang Perlindungan Data Pribadi (UU PDP). These new regulations ensure that background checks are conducted safely and securely, much like how the GDPR protects personal data and information in Europe.
Since most checks are situational—depending on the job position, requirements, and company policy—certain checks, such as education verification, employment history, and criminal records, are often considered mandatory by businesses. Here are some of the most commonly used checks in Indonesia:
Education Check
Employment Check
Identification Check
Criminal Check
Reference Check
Education Check
Verifying an applicant's educational background is a fundamental requirement for most companies. This check is popular due to its effectiveness in uncovering forged diplomas, fake GPAs, misinformation about majors or degree titles, and inaccurate graduation statuses. Whether the applicant studied in Indonesia or abroad, an education check helps quickly identify any false claims. For fresh graduates with little to no professional experience, verifying their educational credentials is crucial for hiring managers to make informed decisions.
Employment Check
The employment check is designed to verify an applicant's work history, commonly used when professional experience is a key requirement. This check provides detailed insight into an applicant's previous roles by confirming their employment period, job title, performance, awards, any misconduct, and reasons for leaving. Employment history is one of the most common areas for embellishment on CVs, where applicants may exaggerate their achievements or responsibilities to make their profiles stand out.
Identification Check
An Identification Card (ID) check is used to authenticate an applicant's ID, verifying key details such as their full name, date of birth, registered address, and ID number. This basic information is crucial for preventing fraud, as an applicant could potentially secure a job with a forged ID and disappear if not properly verified. In such cases, it becomes challenging for law enforcement to track down the individual if false information is not provided during the hiring process.
Criminal Check
For most recruitment processes, a criminal check is mandatory due to the nature of its importance. The goal here is to discover any domestic crime committed by applicants. Verification is usually conducted directly at the local police station. There are several types of common crimes that we want to avoid from applicants, such as theft, child abuse, sex offenders, and drug-related crimes.
Reference Check
In Indonesia, most job applications require candidates to provide professional references from previous employers, making this standard a potential source of misinformation. Applicants may collude with their references or create schemes to mislead employers. By conducting reference checks through professional screeners, employers can gather valuable insights from referees. Additionally, it is crucial to verify that these references are qualified to provide accurate testimonials about the applicants' backgrounds and performance.
There are still many other useful checks, such as address checks, litigation checks, media checks, professional certifications check, and bankruptcy checks, that can be utilized to improve human resource due diligence further.
Advantages of conducting a background check in Indonesia
1. Save hiring costs and time
2. Reduce employees turnover rate
3. Protect company reputation
4. Mitigate the risk of fraud
5. Safeguard company's assets
If you ever need assistance conducting a background check in Indonesia, you may consider T2 Intelligence your most trusted screening partner. Our service will enable your HR to screen applicants in the APAC region, Europe, and the United States. For more information, feel free to contact us.
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