eFishery founder faces 10-year jail demand as US$300m fraud case rattles investor trust

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Prosecutors in Indonesia have sought a 10-year prison sentence for Gibran Huzaifah, founder of eFishery, in a case that has become one of Southeast Asia’s most high-profile startup scandals, raising fresh questions around governance and due diligence in the region’s venture capital landscape.

The demand was read out during a hearing at Bandung District Court on 15 April 2026, where prosecutors alleged Huzaifah and two former executives of Multidaya Teknologi Nusantara (eFishery) of manipulating financial statements over several years. The alleged misconduct resulted in investor losses estimated at around US$300 million.

In addition to the prison term, prosecutors are seeking a fine of IDR 1 billion (US$58,000), with provisions for asset seizure or an additional 190 days’ imprisonment if unpaid.

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Huzaifah is not the sole defendant. Former vice president of corporate finance and investor relations, Angga Hadrian Raditya, faces a similar 10-year demand and IDR 1 billion fine, while Andri Yadi, former vice president of artificial intelligence and internet of things, faces an eight-year term alongside the same financial penalty.

A crisis of trust

At the heart of the case is the accusation that the executives inflated revenue figures to maintain investor confidence and secure continued funding, particularly as the company faced mounting liquidity pressures. Court findings suggest eFishery had been nearing financial distress before the alleged manipulation began.

The prosecution further claimed the actions caused losses to the company exceeding IDR 69 billion (US$4 million) and eroded investor trust, although it did not detail how the figure was calculated. Prosecutors also noted that the defendants showed no remorse throughout the trial.

The scandal has reverberated across the investment community, with backers including SoftBank, Temasek, Sequoia India (now Peak XV), and Aqua-Spark among those exposed to the fallout.

Once valued at over US$1 billion, eFishery had been widely regarded as a pioneer in Indonesia’s agritech sector, offering automated feeding solutions for fish and shrimp farmers. Its collapse marks a dramatic reversal for a company previously hailed as a regional success story.

“Growth hacking” under pressure

Huzaifah acknowledged wrongdoing, pointing to intense investor pressure and industry norms as contributing factors behind his decisions.

“I knew it was wrong. But when everyone else is doing it and they’re still fine and never get caught, you start to question whether it’s really wrong,” Huzaifah said.

Evidence presented in court revealed that the idea to manipulate financial reports emerged as early as 2017, when the company’s cash balance had dwindled to just US$8,142. The practice allegedly continued between 2018 and 2024 as part of efforts to sustain operations and attract new capital.

The defence has pushed back against the charges, arguing the matter should be treated as a civil dispute rather than a criminal case. Huzaifah’s lawyer also stated there was no evidence of personal financial gain by the founder.

The eFishery case underscores how quickly reputation capital can unravel, particularly for companies that rely heavily on narrative-driven growth and investor storytelling.

The startup’s rise was fuelled not only by product innovation but also by its positioning as a transformative force in Indonesia’s aquaculture industry – an image that helped secure backing from global investors. Its fall now highlights the risks of over-reliance on growth narratives unsupported by robust financial transparency.

The next phase of the trial will see the defence deliver its plea on 22 April, with a final verdict expected by the end of the month.

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