Hundreds of eFishery employees staged a protest on Thursday (23 Jan), demanding transparency and a thorough investigation into allegations of financial misconduct within the company.
In addition to demanding transparency, the workers also called for the Indonesia’s agritech unicorn to scrap its planned mass layoffs and explore viable business strategies to sustain operations.
Over 100 employees gathered at the company’s Bandung headquarters to voice their concerns, urging management and investors to address the crisis that has disrupted operations and created widespread uncertainty for the workforce.
Risyad Azhari, a representative of eFishery’s workers’ union, explained that the protest included an open discussion among employees, with the outcomes set to be presented to the company’s new CEO and management team.
The protest was triggered by reports of mass layoffs planned for February 2025 and the potential closure of eFishery’s operations.
The union strongly opposes these plans, suspecting that the layoffs are aimed at avoiding obligations such as the Eid Allowances (THR) for employees.
The union expressed significant concern about the cessation of field operations, which has negatively impacted farmers, pond owners, and consumers reliant on eFishery’s ecosystem.
In addition to concerns over the layoffs, the union also expressed alarm over recent allegations of systematic fraud within the company, further damaging public trust in eFishery.
The union emphasised that the majority of workers maintain integrity and professionalism and should not be implicated in any alleged financial discrepancies.
They also called for a public clarification to restore the workers’ reputation, emphasising that most employees were not involved in the reported financial irregularities, including inflating financial reports or participating in systematic fraud.
Fraud Allegations Uncovered
eFishery, Indonesia’s agritech unicorn, is under intense scrutiny following allegations of inflated revenue and profit figures, which threaten the reputation of the country’s thriving startup ecosystem.
Founded in 2013, eFishery quickly made a name for itself by revolutionising Indonesia’s aquaculture sector through innovative solutions for fish and shrimp farmers.
Its flagship product, eFeeder, an automated feeding system, gained widespread acclaim for optimising aquaculture operations.
Since its inception, eFishery has been at the forefront of developing technology solutions, digital platforms, and e-commerce services for the aquaculture industry.
By 2023, the company achieved unicorn status with a valuation of US$1.3 billion.
High-profile investors such as Temasek participated in its $200 million Series D funding round, further bolstered by G42, an AI firm linked to UAE royalty Sheikh Tahnoun bin Zayed Al Nahyan.
However, eFishery’s rapid ascent came under scrutiny in December 2024 when a whistleblower accused the company of inflating its revenues by $600 million over a nine-month period.
A draft report by FTI Consulting, based on interviews with staff and reviews of financial records and communications, exposed significant discrepancies in eFishery’s accounting practices.
Following the whistleblower’s revelations, a formal investigation was launched, uncovering widespread financial irregularities.
The company’s board dismissed co-founder and CEO Gibran Huzaifah in December 2024, responding to investor concerns over alleged misappropriation of funds and fraudulent reporting.
In a statement, eFishery acknowledged the severity of the situation, pledging to uphold the highest standards of corporate governance and ethics.
FTI Consulting’s findings revealed that 75% of eFishery’s financial reports were fabricated.
Instead of the reported $752 million in revenue, the company’s actual earnings were closer to $157 million.
The reported profit of $16 million for 2024 was revised to a loss of $35.4 million.
Further discrepancies emerged in operational metrics, with eFishery’s claim of 400,000 active fish feeders reduced to an actual count of approximately 24,000.
eFishery’s Alleged Financial Manipulation
According to a report from Kontan in December 2024, suspicions about eFishery’s financial reports began to surface among investors.
Sources familiar with the situation revealed that eFishery had created fictitious financial reports, dividing its sales flow into two categories: the sale of farmed fish with a loan for an automatic feeder called eFeeder, and the sale of the eFeeder tool itself.
However, many of the fish farms had failed, and instead of reporting the loss, eFishery’s management reportedly recorded the unsold eFeeder tools as assets.
A Kontan source explained, “eFishery has assets of IDR 5 trillion ($307 million), but the price of one tool is only IDR 1.3 million ($80). So how many tools do they have? Imagine how strange and unreasonable it is.”
The source further explained that the company recorded bad debts as assets, essentially covering up the poor performance of its cultivation results.
This manipulation made eFishery appear to be growing rapidly, attracting additional investment despite its financial challenges.
In September 2024, Gibran Huzaifah publicly admitted to a small fraud ratio of 0.5% of the company’s total income.
He claimed that the deviation was within a reasonable range and that the issue had already been resolved.
CFO’s Resignation Signals Potential Issues at eFishery
In April 2024, eFishery’s Chief Financial Officer, Dhianendra Laksamana, resigned from his position, citing personal reasons and preferences.
A spokesperson for the company expressed gratitude for Laksamana’s contributions, highlighting his role in expanding eFishery’s financial and operational capabilities.
Laksamana joined fishery in August 2022 and was credited with spearheading key initiatives, including a significant collaboration with Amar Bank in March 2024 aimed at enhancing the company’s financial reach.
Jeremy Au, host of the BRAVE Southeast Asia Tech podcast, noted that such exits often serve as “micro signals” of underlying issues.
He drew a comparison to the departure of Zilingo’s CFO, who left the company shortly after joining from a reputed bank.
According to Au, the departures of senior executives, particularly CFOs, are critical moments for investors to assess, and conducting a strong exit interview is crucial to understanding the reasons behind these changes.
Impact on investors and stakeholders
The revelations of financial irregularities at Indonesia’s agritech unicorn, eFishery, have sent shockwaves through the startup ecosystem, leaving investors and stakeholders grappling with the fallout.
Key backers, including Temasek and SoftBank, have remained silent on the matter despite the growing controversy.
Even with audits conducted by PricewaterhouseCoopers and Grant Thornton, as well as internal controls like channel checks, the scale and sophistication of the alleged fraud surprised many stakeholders.
Financial records show eFishery accumulated retained losses of $152 million since its inception, while total assets are valued at $220 million.
These include $63 million in accounts receivable and $98 million in investments.
Patrick Sugito Walujo, co-founder of Northstar Group and a significant investor in eFishery, revealed during the Indonesia PE-VC Summit 2025 that the fraud at eFishery was systematic and had allegedly been ongoing since 2018.
Walujo described the situation as “embarrassing” and expressed disappointment over the embezzlement of funds by those managing the company.
“The damage they have done to Indonesia, the startup community, and our credibility is enormous. We will investigate this thoroughly and take it very seriously,” Walujo stated.
Walujo emphasised the broader ramifications of the scandal, calling it a significant blow to Indonesia’s digital businesses and the startup ecosystem.
He urged startup leaders to prioritise investor trust, warning that fraudulent practices, no matter how well-concealed, will eventually come to light.
Government Calls for Transparency
Deputy Minister of Communication and Digital, Nezar Patria, has confirmed that the audit into the case is ongoing and stressed the need for startups to implement Good Corporate Governance (GCG) principles.
“The audit is still ongoing. What needs to be prioritised is the application of GCG. Hopefully, the findings will shed light on the issue and offer valuable lessons for the future,” Nezar stated on Wednesday (22 Jan).
Nezar underscored the importance of this case as a learning moment for Indonesia’s burgeoning startup ecosystem, highlighting the need for transparency and accountability.
“This is a reminder of the role of GCG in building healthy and profitable corporations,” he added.
Despite the controversy, Nezar expressed hope that the eFishery case would not dampen the enthusiasm of other startups in Indonesia.
He encouraged emerging businesses to continue striving for growth while adhering to ethical practices and robust governance structures.
