eFishery scandal culminates in nine-year sentence for founder Gibran Huzaifah

The founder and former CEO of Indonesian aquaculture startup eFishery, Gibran Huzaifah, has been sentenced to nine years in prison, marking a defining moment in one of the country’s most closely watched corporate fraud cases.

The ruling was delivered at the Bandung District Court on 29 April. Huzaifah was found guilty under Indonesia’s criminal code provisions relating to embezzlement in office, in conjunction with multiple articles covering collective criminal conduct and repeated offences.

The sentence is slightly lighter than the 10-year prison term sought by prosecutors, though the IDR 1 billion (US$58,000) fine remains unchanged. Both the defence and prosecution have said they are considering whether to appeal.

Don't miss: eFishery founder faces 10-year jail demand as US$300m fraud case rattles investor trust

The case centres on allegations that eFishery inflated its revenue by approximately IDR 9.75 trillion (US$563 million) between January and September 2024, raising serious concerns about governance and transparency within Indonesia’s startup ecosystem.

The issue first surfaced following a whistleblower report and a leaked 52-page draft investigation conducted by FTI Consulting. Subsequent findings pointed to significant inaccuracies and manipulation in the company’s financial reporting.

The probe, which began in December 2024, led to Huzaifah’s dismissal as CEO and the appointment of FTI Consulting to oversee the company’s management.

The scandal emerged shortly after eFishery had secured a reported US$200 million Series D funding round – highlighting the scale of the discrepancy and its potential implications for investors.

Beyond the courtroom, the fallout has been severe for the company’s operations and employees.

By early 2025, eFishery had reportedly laid off around 90% of its workforce, according to internal sources. The cuts followed operational stagnation, with the business said to have effectively ceased operations by late December 2024.

Following the verdict, Huzaifah expressed dissatisfaction with the court’s decision, arguing that it did not reflect the facts presented during the trial.

For Indonesia’s marketing and startup ecosystem, the eFishery case represents more than a legal outcome – it is a reputational inflection point.

Once celebrated as a homegrown unicorn leveraging technology to modernise aquaculture through innovations such as automated feeding systems, the company’s downfall now raises pressing questions around due diligence, investor oversight, and the sustainability of hypergrowth narratives.

Be part of PR Asia Indonesia 2026 on 15 July 2026 – the first time this regional communications flagship lands in Jakarta – bringing together communications leaders ready to redefine influence, reputation, and impact!

Related articles:
Indonesia's startup sector at a crossroads: regaining trust after a wave of scandals
Indonesia tightens scrutiny on big tech as child protection rules take effect
Care before control: What Green SM's Bekasi response reveals about crisis communications