FRAUD AND THEFT CASES AT AN OUTSOURCING COMPANY LEAD TO CLIENTS TRUST ISSUE: A CASE OF PT JATI PETIR

Abstract

PT. Jati Petir is a labor outsourcing firm located in Cikarang, West Java, an area recognized for its industrial sectors and substantial Foreign Direct Investment (FDI). The organization supplies security officers to local and foreign manufacturing companies. PT. Jati Petir has established itself as a reliable service provider, serving 70 clients. Between 2020 and 2024, recurrent incidents of fraud and theft perpetrated by its security personnel at client organizations tarnished its reputation, resulting in contract terminations and financial losses. This case study used a qualitative research methodology incorporating data triangulation to guarantee precision and comprehensiveness. Data were gathered via direct observation, comprehensive semi-structured interviews, and document analysis. Interviews were performed with internal stakeholders from PT. Jati Petir, including HR personnel, directors, legal advisors, and team leaders, as well as representatives from client organizations affected by fraud and theft, such as warehouse and HR department heads. The study identified persistent trends and cross-validated findings by collecting insights from both the outsourced provider and the impacted clients to comprehend the underlying causes and effects. The results indicated significant deficiencies in recruitment, absence of ethical vetting, inadequate oversight, and insufficient training. The majority of instances transpired during periods of minimal activity, facilitating internal wrongdoing to remain unnoticed and significantly undermining client trust. To restore confidence and enhance service quality, PT. Jati Petir must enforce more rigorous recruitment procedures, conduct frequent ethical training, and establish robust monitoring mechanisms in partnership with its clients.