Comprehensive Guide to Employment Background Checks in Indonesia
Everyday, Veremark carries out background screening all over the world for companies who need checked and verified employees. If you’re looking for background checks in Indonesia, here’s some information that might help.
As one of Southeast Asia's largest economies, Indonesia has made significant strides in various sectors, including technology, manufacturing, and services. With a rapidly expanding workforce and increasing foreign investments, the need for comprehensive employment background checks has become more important than ever. This guide explores the landscape of employment background checks in Indonesia, covering legal frameworks, common practices, privacy considerations, and best practices for employers.
Introduction to Indonesia’s Growing Economy and Workforce
Indonesia, with its population exceeding 270 million, is the fourth most populous country in the world and boasts a diverse workforce. The nation has experienced robust economic growth, largely driven by its abundant natural resources, expanding digital economy, and increasing foreign investment. This dynamic environment has created a competitive job market, where employers seek to hire qualified and trustworthy employees. Consequently, thorough employment background checks are essential for ensuring that candidates meet the necessary qualifications and uphold the integrity of the workplace.
Legal Framework and Data Protection
The legal framework governing employment background checks in Indonesia is influenced by both national laws and international standards. Understanding these laws is crucial for employers aiming to conduct background checks in compliance with legal requirements.
Key Legal Aspects of Background Checks in Indonesia:
- Legality and Relevance: Employers in Indonesia are permitted to conduct background checks, provided that they are relevant to the position being filled. Checks should not infringe upon an individual's privacy or be overly invasive.
- Explicit Consent: Obtaining explicit written consent from candidates before initiating any background checks is mandatory. This consent must be informed, ensuring candidates understand the types of checks being conducted and the purposes behind them.
- Criminal Background Checks: In Indonesia, employers often require criminal background checks, known as SKCK (Surat Keterangan Catatan Kepolisian), which is a police clearance certificate that verifies whether a candidate has a criminal record. This certificate is issued by the Indonesian National Police.
- Data Protection Laws: Indonesia's Personal Data Protection Act (PDP) governs the processing of personal data. Employers must comply with this legislation when handling candidates' data, ensuring that personal information is processed lawfully and securely.
Common Background Checks in Indonesia
Employers in Indonesia typically conduct several types of background checks to assess a candidate's suitability for employment. The most common checks include:
Criminal record checks are a standard requirement for many positions, particularly those involving public safety or vulnerable populations. Candidates must apply for an SKCK from the local police department, which details any criminal history.
Verifying a candidate’s employment history is critical to ensure that the information provided in their resumes is accurate. Employers often contact previous employers to confirm job titles, responsibilities, and employment dates.
Employers commonly verify candidates' educational qualifications, ensuring that they hold the degrees and certifications claimed. This process is particularly important for roles that require specific educational credentials.
For companies involved in international business, global watchlist checks are essential. These checks screen candidates against international sanctions lists and regulatory watchlists, helping to mitigate risks associated with financial crime and compliance violations.
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Privacy and Data Security
Privacy and data security are paramount when conducting employment background checks in Indonesia. Employers must adhere to strict guidelines to protect candidates' personal information and comply with applicable data protection laws.
Key Considerations for Privacy and Data Security:
- Informed Consent: Employers must obtain explicit written consent from candidates before collecting personal data for background checks. This requirement ensures transparency and respects individuals' rights.
- Data Minimisation: Employers should only collect the minimum necessary personal data required for background checks. This practice aligns with principles of data protection and helps reduce the risks associated with data handling.
- Secure Data Storage: Personal data collected during background checks must be stored securely, with access limited to authorised personnel only. Implementing robust security measures protects candidates’ privacy and minimizes the risk of data breaches.
- Data Retention and Deletion: Employers should establish clear policies regarding how long candidate data will be retained. Personal data should only be kept for as long as necessary for its intended purpose and securely deleted thereafter.
Turnaround times
Industries Benefiting from Background Checks
Education
Employers in the education sector often conduct criminal background checks on individuals working with children or vulnerable populations, ensuring the safety of students.
Healthcare
The healthcare sector requires rigorous background checks to verify staff qualifications and criminal histories, ensuring patient safety and compliance with regulations.
Finance and Banking
In the finance sector, background checks are essential for compliance with regulatory frameworks and preventing financial crimes. Criminal record checks and global watchlist screenings are particularly critical.
Hospitality and Tourism
In the hospitality industry, background checks help ensure that employees maintain the high standards of service and safety expected by customers.
Best Practices for Employers Conducting Background Checks
To ensure compliance and efficiency, employers in Indonesia should adhere to the following best practices when conducting background checks:
- Obtain Explicit Written Consent: Always secure informed consent from candidates before conducting background checks, ensuring transparency and compliance with legal standards.
- Conduct Relevant Checks: Perform only those background checks that are necessary for the specific role, avoiding unnecessary invasiveness.
- Engage Reputable Providers: Work with trusted, compliant third-party background check providers familiar with Indonesian regulations to ensure accurate and efficient checks.
- Ensure Compliance with Data Protection Laws: Follow Indonesia’s data protection laws throughout the background check process, including obtaining consent, data minimisation, secure storage, and timely deletion of data.
- Plan for Turnaround Times: Factor in the time required for background checks when establishing recruitment timelines to avoid delays in the hiring process.
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As Indonesia continues to grow as a competitive player in the global economy, employment background checks are becoming an essential part of the hiring process for businesses. By adhering to legal standards, focusing on relevant checks, and implementing best practices for data protection, employers can safeguard their organisations and build a trustworthy workforce.
Conducted thoughtfully and in compliance with Indonesian laws and regulations, background checks empower employers to make informed hiring decisions, contributing to a secure and effective workplace that fosters growth and innovation.
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FAQs
This depends on the industry and type of role you are recruiting for. To determine whether you need reference checks, identity checks, bankruptcy checks, civil background checks, credit checks for employment or any of the other background checks we offer, chat to our team of dedicated account managers.
Many industries have compliance-related employment check requirements. And even if your industry doesn’t, remember that your staff have access to assets and data that must be protected. When you employ a new staff member you need to be certain that they have the best interests of your business at heart. Carrying out comprehensive background checking helps mitigate risk and ensures a safer hiring decision.
Again, this depends on the type of checks you need. Simple identity checks can be carried out in as little as a few hours but a worldwide criminal background check for instance might take several weeks. A simple pre-employment check package takes around a week. Our account managers are specialists and can provide detailed information into which checks you need and how long they will take.
All Veremark checks are carried out online and digitally. This eliminates the need to collect, store and manage paper documents and information making the process faster, more efficient and ensures complete safety of candidate data and documents.
In a competitive marketplace, making the right hiring decisions is key to the success of your company. Employment background checks enables you to understand more about your candidates before making crucial decisions which can have either beneficial or catastrophic effects on your business.
Background checks not only provide useful insights into a candidate’s work history, skills and education, but they can also offer richer detail into someone’s personality and character traits. This gives you a huge advantage when considering who to hire. Background checking also ensures that candidates are legally allowed to carry out certain roles, failed criminal and credit checks could prevent them from working with vulnerable people or in a financial function.
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