Despite the scandal of alleged fraud and embezzlement cases committed by fisheries startup eFishery and fintech Investree, the startup ecosystem market is still promising in the eyes of investors. This is supported by a large population or market, stable economic growth, and massive use of technology.
Former eFishery CEO and founder Gibran Huzaifah is suspected of manipulating financial statements by inflating revenues to US$600 million or around Rp9.7 trillion in the January-September 2024 period. Behind that, the company's real income was only US$157 million. More than 75% of the data in the report is said to be false.
Previously, the startup , which was established in October 2013, continued to grow and became the new belle of this ecosystem. In fact, eFishery has managed to achieve unicorn status or a startup with a valuation of more than 1 billion US dollars in early 2023. This valuation was obtained after getting funding from well-known investors, one of which was 42X Fund.
After this scandal was revealed to the public, Gibran fled. However, finally the Directorate of Special Economic Crimes (Ditipdeksus) of the Criminal Investigation Agency (Bareskrim) of the National Police arrested Gibran on Thursday (31/7/2025).
Similarly, the Investree case has a similar storyline. Founded by Adrian Gunadi, Investree became one of the pioneers of the peer to peer lending fintech industry. Adrian was even appointed Chairman of the Indonesian Funding Fintech Association (AFPI).
Investree's problems became public due to a spike in bad debts. The company founded by Adrian Gunadi posted an unhealthy credit spike.
The bad debts accumulated and as of January 12, 2024, Investree had a default rate ratio above 90 days (TWP90) of 12.58%, exceeding the threshold set by OJK of 5%. OJK also took a stand by imposing administrative sanctions.
The majority shareholder of Investree Singapore Pte, Ltd decided to dismiss Adrian Gunadi as President Director. OJK has also revoked Investree's business license since October 21, 2024.
Adrian, who is on the run, is also included in the Wanted List (DPO) with red notice status as of February 7, 2025. OJK continues to encourage Adrian's return to Indonesia through cooperation with relevant authorities at home and abroad.
Still potential
Eddi Danusaputro, Chairman of the Venture Capital Association for Indonesian Startups (Amvesindo), said that in terms of market, Indonesia is still promising for startups due to stable economic growth and massive use of technology.
The alleged eFishery fraud case does give a bad impression of investors, but this case is only done by one startup, not all startups in Indonesia.
"There are still many startups in Indonesia that run their business ecosystem based on the rules, not all of them are naughty," he told SUAR, Monday (11/8/2025).
In order to make the startup ecosystem in Indonesia healthier and avoid cases of fraud, investors should conduct a background check on the pioneers or founders.
Background check is important to know whether the founder has a good track record or not, has been involved in criminal cases or not.
He added that many investors in developed countries have conducted background checks on potential partners, and Indonesia should follow suit.
Indonesia should also have a startup business supervisory team . So far, startup supervision is carried out across ministerial sectors so that supervision is not focused. The sectors that still attract startups in Indonesia are fintech and logistics, both of which are projected to continue to grow.
Strengthen the governance system
Chairman of the Steering Committee of Indonesia Fintech Society (IFSoc) Rudiantara stated that currently, the startup investment climate in Indonesia is shaky due to the many fraud cases that have sprung up in the startup world such as the eFishery case.
If not taken seriously, it will be dangerous for the development of startup businesses in Indonesia. He asked startup players to create a strong enough business model and sustainable corporate governance to convince investors to invest.
"The company's governance must be correct first, make sure the right people lead it, don't get hit by a case," he told SUAR, Monday (11/8/2025).
The cases of alleged fraud and embezzlement of eFishery and Investree startup funds can be used as lessons for the sustainability of startup businesses in the future.
Director of Digital Economy at the Center of Economic and Law Studies (Celios) Nailul Huda said that the startup ecosystem must be further improved, especially with regard to corporate governance and supervision at both the company and investor levels.
In addition, according to Huda, investors also need to change their paradigm about seeing the development of a startup. Many investors still emphasize increasing the company's valuation rather than looking at business sustainability and net profit.
Therefore, a more strategic and business sustainability-oriented investment approach is becoming increasingly important in today's digital startup landscape.