eFishery, a technology-based startup in the fisheries sector, faces allegations of financial manipulation, a controversy expected to shake investor confidence in Indonesia’s startup ecosystem.
“eFishery is facing a significant challenge that damages its reputation and has a systemic impact on the broader startup ecosystem, particularly those in the fundraising stage. Many startups are now facing heightened uncertainty due to this situation,” said Dina Dellyana, lecturer and Head of the Business Incubator at SBM ITB, on Saturday (25/1).
Due to this case, Dina noted that several venture capital firms (VCs) have become more selective in funding Indonesian startups, fearing similar issues may arise.
“I believe we will see investors becoming more cautious going forward. For now, some may even postpone or cancel their investment plans in the technology sector,” she explained.
However, Dina also emphasized that the eFishery case presents an opportunity to reshape the technology industry into a healthier and more sustainable environment. The industry can achieve long-term stability with a more cautious approach, clearer performance metrics, and a focus on startups with strong business models.
“In today’s digital era, technology remains indispensable. The future of the tech ecosystem will largely depend on the quality of startups that can navigate and survive these challenges,” she said.
eFishery’s management is suspected of engaging in fraudulent activities by inflating assets and revenue. Reports indicate that the company maintained two sets of financial statements—one for internal use and another for external presentation. In the internal report for the January–September 2024 period, eFishery recorded revenue of IDR 2.6 trillion. However, in the external report, the figure was exaggerated 4.8 times, reaching IDR 12.3 trillion. This practice allegedly dates back to 2018.
Additionally, management is accused of manipulating the company’s assets. While reports claimed the company owned 400,000 feed facilities, field investigations suggest the number is closer to 24,000. This asset inflation was allegedly carried out to secure funding from investors. Furthermore, management is suspected of creating a fake company to manipulate income and expenses.
Financial expert and ITB SBM lecturer Yunieta Anny Nainggolan highlighted that financial manipulation is a serious violation rooted in weaknesses in corporate governance. She pointed out that many startups focus excessively on valuation and rapid growth, neglecting that investor trust relies on transparency and integrity. She warned that such practices set a dangerous precedent, making investors more hesitant to fund new startups.
“Startups like eFishery must demonstrate a genuine commitment to reform, such as publishing the results of independent audits. A management restructuring is also crucial, particularly by bringing in new leadership with a credible track record,” she said.
“In the end, integrity is key. Startups must not only pursue ambitious goals but also achieve them ethically. All stakeholders—including investors, founders, and the broader startup ecosystem—must learn from this incident to foster a stronger, more accountable future,” Yunieta concluded.