Indonesia's eFishery, once valued over US$1 billion, faces a significant legal reckoning as prosecutors seek a 10-year prison term for its founder, Gibran Huzaifah, linked to a staggering US$300 million loss for investors. The case highlights the collapse of what was once a leading agritech firm in Southeast Asia, now regarded as a major startup failure.
During a court session on April 15 at Bandung District Court, state prosecutors accused Huzaifah and two executives of causing losses exceeding 69 billion rupiah and damaging investor trust, stating that the defendants showed no remorse. The trial underscores the fallout from an investigation revealing revenue inflation over several years, which has raised concerns about regulatory oversight in the region's venture capital landscape.
Prosecutors outlined that the proposed sentence stems from charges of embezzlement and money laundering. Alongside the prison sentence, they are also pursuing a fine of one billion rupiah, with assets at risk of seizure if the fine remains unpaid. The court proceedings follow Huzaifah's disclosure to Bloomberg News about the falsification of accounts that contributed to eFishery's downfall.