Indonesia’s Corruption Court on Thursday handed down prison sentences ranging from two to five years to former executives of MDI Ventures and BRI Ventures in the corruption case linked to investments in agritech startup TaniHub Group.
The panel of judges found former MDI Ventures chief executive officer Donald Surjana Wihardja and former MDI Ventures investment executive Aldi Adrian Hartanto guilty under the primary corruption charge and sentenced them to five years and two years in prison, respectively.
Wihardja was fined 750 million rupiah ($42,150), with a subsidiary sentence of 165 days’ imprisonment, while Hartanto was fined 250 million rupiah ($14,050), with a subsidiary sentence of 90 days.
In separate rulings delivered on the same day, the court sentenced former BRI Ventures chief executive officer Nicko Widjaja to three years in prison and former BRI Ventures investment executive William Gozali to two years in prison.
Widjaja was fined 350 million rupiah, or a subsidiary sentence of 110 days’ imprisonment, while Gozali was fined 250 million rupiah, or a subsidiary sentence of 90 days.
The court also found former TaniHub president director Ivan Arie Sustiawan guilty of corruption and money laundering, sentencing him to nine years in prison and a 1 billion rupiah fine, with a subsidiary sentence of 190 days’ imprisonment. The judges ordered Sustiawan to pay 3.26 billion rupiah in restitution.
If the payment is not made within one month after the ruling becomes final and binding, prosecutors may seize and auction his assets. Should the amount remain unpaid, it will be replaced with an additional four-year prison term.
Lastly, former TaniHub director Edison TPL Tobing sentenced to seven years in prison and a 1 billion rupiah fine, with a subsidiary sentence of 190 days’ imprisonment. The court also ordered Tobing to pay 1.02 billion rupiah in restitution. Failure to pay within one month after the verdict becomes final would allow prosecutors to seize and auction his assets, with an additional three-year prison term imposed if the amount cannot be recovered.
The court also ordered the confiscation of several assets and pieces of evidence from both defendants.
The sentences were substantially lower than the penalties sought by prosecutors, who had demanded 12 years’ imprisonment and a 1 billion rupiah fine each for Wihardja and Hartanto, 11 years and a 1 billion rupiah fine for Widjaja, and nine years and a 1 billion rupiah fine for Gozali.
Similarly, prosecutors had sought a 12-year prison sentence for Ivan and a 10-year sentence for Tobing. While the court maintained the 1 billion rupiah fines and restitution orders for both, it reduced Sustiawan’s prison term to nine years and Tobing’s to seven years. The judges also lowered the substitute prison terms tied to the restitution orders, from six years to four years for Sustiawan and from five years to three years for Tobing.
Following the ruling, Wihardja and Hartanto said they were still considering whether to appeal. Widjaja also said he was weighing his legal options, as were Tobing and Sustiawan, while Gozali plans to appeal the verdict.
The case stems from a $25 million joint investment by MDI Ventures and BRI Ventures into TaniHub and related entities in 2019. Prosecutors alleged that irregularities in the investment approval process and the subsequent use of funds resulted in state losses.
Responses
Widjaja’s legal team said it respected the court’s authority but disagreed with key aspects of the ruling, arguing that the investment had been conducted in accordance with BRI Ventures’ established governance procedures.
According to the defence, the investment underwent multiple stages of review, including pre-feasibility and deep-feasibility studies, internal discussions, and approvals from the company’s authorised decision-making bodies.
The lawyers argued that the court’s assessment failed to adequately consider the nature of venture capital investing, where startups often lack lengthy operating histories, audited financial statements, or established profitability.
“Venture capital firms are specifically mandated under Indonesia’s regulations to take measured risks on high-growth companies. Investment failure is not a deviation from the business model but an inherent feature of venture capital investing,” the defence said.
The legal team also challenged the court’s conclusion that the decline in TaniHub’s valuation automatically constituted a state loss arising from unlawful conduct. It further noted that prosecutors never proved Widjaja had received personal benefits, held undisclosed interests in the investment, or received funds linked to the transaction.
The lawyers argued that the case raises broader questions for Indonesia’s investment ecosystem, warning that criminal liability should not be assessed solely based on the eventual outcome of an investment decision and could create legal uncertainty for investors, directors, commissioners, and investment professionals.
Other defendants had also publicly challenged the prosecution’s arguments ahead of the verdict.
William Gozali’s legal team maintained that BRI Ventures Investment Management’s investment in TaniHub was carried out in accordance with the firm’s internal procedures, including due diligence, legal and compliance reviews, and investment committee approvals. The defence further argued that any losses suffered by BVI did not automatically constitute state losses and said prosecutors failed to show that Gozali had personally benefited from the investment.
Aldi Adrian Hartanto similarly argued that the alleged state loss was not final because MDI Ventures continues to hold shares in TaniHub, which still operates in Indonesia and Singapore. He contended that startup valuations fluctuate over time and that gains or losses are not necessarily realised or permanent. Hartanto also denied receiving money, shares, kickbacks, gratuities, or any personal benefit from the investment.
Donald Wihardja, meanwhile, argued that prosecutors had failed to establish personal enrichment, criminal intent, conflicts of interest, or fund transfers benefiting him. He said venture capital investing inherently involves risk and warned that treating failed investments as corruption cases could discourage investors from backing startups and innovation.
