Corporate Due Diligence in Indonesia: Risks Revealed

Buying a business can be a great thing! You will take over something that is already up and running, and in doing so, you will miss out on all of the hassle and headaches that come with starting up a business. At the same time, it is a big step to take, especially when the company is located in a far-away country like Indonesia.

Not only you will need to obtain a visa, but different rules apply, and various permits are required as well. If you do not know what you are stepping into and with who, you are taking a leap of faith that you should avoid.

You need to be aware of possible risks of taking over an enterprise, and you must always be ahead of surprises that may pop up. Being well informed is of most importance if you want your newly-bought business to become a great success. Due diligence is an essential step in the process of informing yourself on all aspects of the company that you are buying.

It is an in-depth investigation, and it is not something you can do by yourself - you need the help of professionals.

What is Due Diligence and why is it needed?

You have probably already done quite a lot of research on the business that you are buying. Of course, you are already aware of the most common risks of taking over a company in Indonesia but is it enough?

With due diligence, this will no longer be a question.

Due Diligence does thorough research on all aspects of your business including the legal and financial aspects. All of the layers of the business are peeled off so that there is no question left unanswered and risks are minimized. Knowing where the business has been in the past and where it is today gives direction and sharp insights into what you need for a great kick-start to turn your business into a success.

Business structures, legal issues and finances

Legal matters and finances are where most of the information can be hidden. However, with the due diligence investigation, you will gain insights into the financial statements, balance sheets, income, tax returns and cash flow statements of the business. Copies of the business’s agreements, the insurance policies, required licenses and permits are made, reviewed and handed over to you.

You will also go through the contracts made with the business’s employees, including their wage, benefits and confidentiality agreements. Depending on the structure of the company, you may also need to deal with the board of directors and shareholders. Will you keep these contracts or do you want to buy them out? The past and current status of the business is very vital in this consideration, and professional insights are needed to make the best decisions.

By thorough due diligence research, you will get to know the real value of the business, and you will also get a better idea of what is a fair price to pay.

Cekindo can help

Cekindo Business Centre offers both personal and corporate background checks in Indonesia. These checks give you insiders information on the company you want to buy and the people you want to collaborate with.

The check takes 6 to 12 working days and after you will be provided with a report, stating up-to-date information on the business’s highlights and downfalls, the risks, the financial situation, legality, the management structure, Board of directors, business relationships, and shareholders. The check also gives insights into the company’s reputation, suppliers and customers. These revelations will help you to know what you are stepping into and with whom exactly.

Corporate due diligence is essential if you want to be safe and help your business grow bigger and better. Take a step now and order due diligence in Indonesia online.

For more information about our services call us at+622 180 660 900 or drop us a message at

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