Top 5 Reasons You Should Conduct a Pre-Employment Background Check

We can cite numerous reasons why every business, whether big or small, should always perform a pre-employment background check. But for this article, we’d like to concentrate on the top 5 based on the perspective or context of the Indonesian law.

1. To verify all certifications and education.

These days, many industries or businesses don’t put a lot of weight in education. Rather, they’d concentrate on the working experience and soft skills such as their ability to learn fast and adapt to the company culture.

In Indonesia, however, your employee’s education counts a lot. The country remains very protective of its locals. Thus, if companies wish to hire foreign employees, they need to justify it. They should show proof that the job requires a specific set of skills no Indonesian can fill in or do efficiently.

Indonesia, therefore, wants you to hire people with at least 5 years of working experience or an education that matches the position.

Thanks to globalization, that should not be a problem. The worry is landing someone with fake credentials. People with untrue degrees can face jail time and a huge fine, not to mention a scrutiny on your business and a damaged reputation.

2. To avoid cost of liability.

Opening a business in Indonesia isn’t cheap, with the needed capital most likely to be high. Furthermore, based on the law, you need to hire locals for every foreign employee you acquire. Training isn’t that affordable either, and the process of acquiring a work permit in Indonesia can be laborious unless you get the right help from companies like Cekindo.

In other words, bringing a new person, especially a foreigner, into your Indonesian team can cost you a lot of money, which you can’t afford to waste by having a bad hire.

3. To skip the trouble that comes with termination.

If you think terminating an employee in Indonesia is easy, you better reconsider that thought. The country has very strict regulations when it comes to dismissal. One, you may have to deal with the labour union. It can never be unilateral. Second, it’s possible you still have to pay the termination compensation, which is different from the severance pay.

4. To reduce cost of re-hiring.

Besides losing money by hiring the wrong person, you can still end up spending more due to re-hire. First, your business will already suffer from the loss of productivity. You also need to spend on re-training and recruitment. Moreover, it means another round of payments for work permits and visas, as well as to the development fund paid to Ministry of Manpower.

5. To comply with the labour laws.

Did you know that there are industries where you cannot hire a foreign employee? These include legal department, human resources, and quality control and inspection. These are just some of the regulations that govern hiring and employment, and knowing how these can change very quickly, it’s not impossible to make a mistake and make your hiring process illegal.

What Cekindo Can Do for You

The answers are simple. One, Cekindo can perform due diligence on behalf of your business. The country limits the private data you can check about your employees, but with our experience, connections, and knowledge on the labour laws, we can scrutinize and confirm information within 7 days.

We will give you a written report that you can then keep for future reference of your employees. And we have an amazing team of hardworking and smart business consultants who can guide you through the rest of the recruitment process, even helping you establish one in the country.


For more information on these services, call us at +622 180 660 900.

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