EFishery founder faces 10-year jail in fraud case

Indonesian prosecutors asked the Bandung District Court to sentence eFishery founder Gibran Huzaifah to 10 years in jail and fine him 1 billion rupiah (US$58,000) on embezzlement in office and money laundering charges after he admitted to inflating the startup’s revenue.

The Indonesian aquaculture tech startup began unraveling after a board investigation revealed it may have overstated revenue and profit for years.

Prosecutors said Huzaifah and two former executives caused more than 69 billion rupiah (US$4 million) in losses to the company and harmed investor confidence, though they did not explain how they calculated that figure.

They also sought 10 years and a 1 billion rupiah fine for ex-finance executive Angga Hadrian Raditya, and eight years and a 1 billion rupiah fine for Andri Yadi, the company’s former AI and IoT executive.

Huzaifah’s lawyer said the case should be handled as a civil matter, adding that no evidence has been presented showing any funds flowed to his client.

🔗 Source: Bloomberg

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Implications, context, and why it matters.

The prosecution’s stated loss figure may not capture the full scope of the alleged misconduct

The company began to unravel in December 2024 after a whistleblower raised accounting concerns that led to an investigation, according to reports 1.
For the first nine months of 2024, the startup reported about US$750 million in revenue and a US$16 million profit; reports put revenue closer to US$150 million with a US$35.4 million loss 2.
Reports said the alleged misconduct also involved physical assets, since the startup claimed 400,000 fish feeders deployed while investigators found roughly 24,000 3.

One startup’s troubles have added to concerns about Southeast Asia’s investment climate

The scandal spread through a regional startup scene already facing a funding drought; a January 2025 DealStreetAsia report cited by CNBC put Southeast Asia’s 2024 deal value at 19.5% of the 2021 peak 4.
As a company once treated as a standout example in the region, the allegations have damaged perceptions of Southeast Asian startups, CNBC reported 4.
Industry figures told CNBC the episode could cool investment for at least 12 months, with Indonesian growth-stage companies likely to feel the sharpest impact 4.
CNBC reported investors now push harder for evidence and auditability, which can raise the cost and work required to raise money, especially at middle to later stages 4.