PBSA

PBSA Journal PAGE 4 JULY/AUG 2025 Except where otherwise indicated, articles are copyright © by PBSA 2025. All rights reserved. Dissecting Indonesia's Longstanding Problem: Forged Education and Employment Credentials Continued from page 3 The numbers indicate that higher fraud rates involving academic credentials were detected among experienced professionals, compared to entry-level or graduate job seekers; a pattern that appears connected to industry- switching moves into high-value sectors with more desirable pay and growth opportunities. Systematic Falsification An investigation of falsified applications among seasoned professionals uncovered a layered fraud pattern where many applicants combine fake education credentials with legitimate employment references, adapting to sophisticated screening processes. In a minority of cases, forged academic credentials coincide with employment history red flags, including fake reference letters, pay slips, and invalid working periods, particularly during sector transitions. Technical sectors like engineering and manufacturing show the highest candidate-employer mismatch rates, followed by technology, business support services, and consumer goods, with better alignment in insurance. However, employment fraud rates remain elevated even among applicants with relevant industry backgrounds in primarily traditional sectors, such as insurance, banking, engineering, pharmacy, and logistics. Common patterns include counterfeit certifications, job title discrepancies, inflated tenure, false affiliations, and fabricated references, indicating that systematic credential falsification crosses industry boundaries. Examples include a 34-year-old associate who forged his recommendation letter transitioning from technology to insurance, with unverifiable employment history, and a 47-year- old consumer goods manager who forged both academic certificates and work documents for an insurance role. Credential fraud's concentration among mid-level and senior applicants reveals concerning realities about career stagnation and earning potential within Indonesia's labor market, with seasoned workers attempting cross-sector transitions at mature career stages, potentially due to socioeconomic pressures and mobility constraints. Career and wage stagnation also drives entry-level candidates toward high-paying fields like tech and banking from the outset, even when misaligned with prior experience, creating fertile ground for fraud among graduate roles. The stark difference in educational fraud rates between entry-level and senior applicants may stem from generational factors; older applicants obtained credentials without digital verification systems, while younger applicants understand today's sophisticated verification infrastructure and higher detection likelihood. Fraud strategies also varied by career level. Applicants aged 30-40 often under report work experience to avoid deeper scrutiny, while others inflate their tenure to qualify for senior roles, demonstrating calculated responses to verification processes. Breaking the Cycle: Character Flaw or Systemic Flaw? Indonesia's widespread credential fraud crisis reflects deeper institutional issues that extend well beyond individual ethical failures. While new digital verification systems represent crucial technological advances, they address only the detection side of the equation. The driving forces—economic pressures, career stagnation, and limited mobility pathways—require equally robust government interventions. The concentration of educational fraud among mid-career professionals transitioning between sectors signals a labor market failing to provide adequate career progression opportunities. When experienced workers resort to falsifying credentials to escape stagnation, it reveals structural inadequacies in Indonesia's economic mobility framework. Addressing wage stagnation and limited career advancement opportunities could reduce economic incentives driving credential fraud through legitimate retraining programs and transparent career progression pathways. The public-private sector must introduce accessible upskilling opportunities outside expensive higher education, including professional certification programs, industry-specific training, and skills-based hiring practices. Only through comprehensive reforms that address economic mobility, verification infrastructure, and alternative credentialing pathways can Indonesia restore integrity to its job market, carving a future where credential fraud becomes not just detectable, but unnecessary. l Hana Anandira is a Quality Assurance Editor at Integrity Indonesia. After years of journalistic experience across London and Jakarta, she handles editorial responsibilities ranging from extensive background screenings to high- profile international due diligence cases.

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