Multiple detained in TaniHub-linked graft investigation

Tanihub office / Photo credit: Tanihub

Updated (July 30, 2:25 pm): Added the names of the suspects.

The South Jakarta District Attorney’s Office in Indonesia has detained three individuals in connection with a corruption and money laundering investigation into defunct agritech startup TaniHub.

The case centers on a US$25 million investment made by MDI Ventures and BRI Ventures – both linked to state-owned enterprises – into TaniHub and its affiliated entities between 2019 and 2023, according to a local media report.

The suspects are only identified by their initials: DSW (Donald Wihardja), a director at MDI Ventures; IAS (Ivan Arie Sustiawan), a former CEO of TaniHub; and ETPLT (Edison Tobing), a former TaniHub director. They were reportedly detained on Monday and will remain in custody for 20 days, until August 16.

In a statement to Tech in Asia, MDI Ventures says it respects and supports the ongoing legal process and is committed to cooperate with all relevant parties.

“We understand that in the world of investment—especially in the startup sector—there are dynamics and risks that are part of the business journey,” says Alvin Evander, vice president of strategy and sustainability at MDI Ventures.

Preliminary findings suggest that DSW approved the disbursement of funds unlawfully. IAS and ETPLT are accused of manipulating company data to secure investment, which was then allegedly used for personal purposes.

The investigation is ongoing. Prosecutors are said to be examining whether other individuals were involved and tracing the flow of the allegedly misused funds.

Telkom-backed MDI Ventures led TaniHub’s US$65.5 million series B funding round in 2021, with BRI Ventures also participating. It’s unclear whether the current investigation relates to this particular round.

However, problems began to surface at TaniHub in 2022, particularly related to its lending arm, TaniFund.

In September that year, Tech in Asia reported that TaniHub had been using VC money as a buffer to repay lenders in the event of loan defaults. Doing so created the impression that its projects were performing well while keeping its TKB90—the local metric for successful loan repayments—close to 100%.

This practice persisted until VC funding began to dry up, defaults increased, and its insurance partner reduced coverage. As a result, repayments to lenders stopped, causing TaniFund’s TKB90 to plunge.

Ultimately, Indonesia’s Financial Services Authority (OJK) revoked TaniFund’s business license in 2024, which required the company to liquidate.