The better the partner, the less business risk that will occur. As businessmen, we are required to be able to find the best partners who can support our company so that it can develop in a positive direction. To do this is not easy.

Based on data from the Case Tracing Information System (SIPP-PN), there has been an increase in the number of cases from January to October in 2020 compared to 2019. There was an 81% increase in cases compared to 2019, from 320 cases to 578 cases. How can we avoid partners who have the opportunity to experience this case? Due Diligence is one important step that can overcome this.

In general, due diligence is a term used for investigations to assess the performance of a company or a person or the performance of an activity to meet established standards. In Indonesia, due diligence knew since the beginning of the monetary crisis in mid-1997 and was widely practiced by banks after signing a better of Intent from the International Monetary Fund (IMF) on 15 January 1998.

There are various kinds of due diligence methods that are commonly carried out, such as checking through interviews, checking site visits, checking based on written statements, and also cross-checking based on written statements, as well as cross-checking.

Due diligence is the key to mitigating risk on a business activity that a company will carry out, whether it is a merger, acquisition, or other transaction. The results obtained in due diligence will determine whether the legal risks to be faced are not greater than the benefits obtained if the transaction is continued. It can also be used as a weapon to negotiate prices with clients or suppliers.

There are 4 important due diligence scopes to be needed, namely matters of licensing, assets, employment, and material contracts.

In conducting transactions, it is inevitable that there are conflicts of commercial interests with the law in the context of the speed of making business decisions. Commercially, of course, every company wants business transactions to be carried out quickly, another case with legal issues that require due diligence so that the prudent aspects of risk in the future can be anticipated