Indonesian police have concluded a criminal investigation into alleged fictitious transactions involving fish suppliers to the embattled Indonesian startup eFishery, and named five suspects, including two ex-employees, DealStreetAsia has learned.
The case now moves to the prosecution stage, said officers involved in the investigation that was concluded last year.
The probe began in October 2023 after eFishery’s management filed a complaint over the alleged bogus transactions with police in Bandung, West Java, where the company is headquartered. Following their investigation, the officers handed over the suspects, evidence, and case files to the Bandung Prosecutor’s Office early last year.
Although Indonesian law requires the Prosecutor’s Office to bring the case to court within 15 days, that has yet to happen—a delay that is not unusual in the country’s legal system.
The five accused in the case are:
- Rovi Faturachman and Ricianto: Both former B2B managers at eFishery. They have been accused of colluding with three external parties to facilitate fictitious supply transactions.
- Ahmad Nurhadiansyah, the CEO of PT Jaya Sarana Energi. As per DealStreetAsia’s findings, PT Jaya Sarana Energi is involved in the import and export of frozen fish and agricultural commodities.
- M. Faizal Zulkarnain, CEO of PT Sakana Umi Nusantara Bahari, which operates in the fisheries sector and has a track record of large-scale procurement.
- Marsudi Budi Wiyatno, Director of CV Dwi Lestari, a construction firm based in North Lombok. The company allegedly served as a pass-through entity, facilitating fund flows linked to the scheme without playing a substantive operational role.
The five suspects have been charged under Article 378 of the Indonesian Criminal Code, which relates to fraudulent conduct and carries a maximum penalty of four years’ imprisonment. The alleged fraud is estimated to have caused losses of 39 billion rupiah (approximately $2.4 million), according to the investigators.
This case is distinct from a separate probe involving eFishery co-founders Gibran Huzaifah and Chrisna Aditya. The two are under investigation for allegedly manipulating the company’s financial performance to present a rosy picture to potential investors—an allegation first brought to light by DealStreetAsia in December last year.
Early red flags
A former eFishery employee who worked for the company’s Governance, Risk, and Compliance (GRC) division told DealStreetAsia that his team had flagged suspicious activity involving field staff generating fake transactions. The team filed formal reports with local authorities, this case being one of them.
The source, who requested anonymity, said the GRC team had oversight of eFishery’s fish and shrimp business segments. However, it noted a stark contrast in risk culture between the two. While the shrimp segment demonstrated stronger governance practices and even conducted anti-fraud training sessions, the fish division was flagged for operational immaturity and repeated compliance breaches, factors, the source said, significantly contributed to financial leakages.
eFishery was deemed “commercially unviable” by financial advisor FTI in a forensic audit conducted early this year.
The unravelling of eFishery’s financial misconduct has sent shockwaves through Indonesia’s startup ecosystem. What was once seen as a promising player in the agritech space has now become a cautionary tale of unchecked growth and weak governance practices. The forensic audit uncovered multi-year discrepancies between the company’s internal financial records and the figures presented to investors.
For example, eFishery’s internal accounts reported revenue of 2.6 trillion rupiah (approximately $161 million) for the period January to September 2024. However, external statements shown to potential investors inflated this figure nearly fivefold, claiming revenue of 12.3 trillion rupiah.
At the heart of the case lies a complex fraud that is still under active investigation. Authorities are working to determine the extent of involvement not only of eFishery’s co-founders and former executives but also whether any investors played a role or turned a blind eye as the company pursued successive funding rounds on inflated numbers.
Even as eFishery grapples with the fallout of a series of financial irregularities, Aqua Bridge Holding, an investment firm linked to Dubai’s royal family, has emerged as the sole party pursuing an acquisition of the startup, DealStreetAsia reported recently.
According to sources familiar with the matter, an audit by FTI Consulting triggered initial interest from four to five local and international players. However, Aqua Bridge is now the only party still in the frame.
