An Indonesian appeals court has reduced the prison sentences for two former executives of the collapsed agritech unicorn eFishery, Gibran Huzaifah and Andri Yadi. The Bandung High Court lessened the sentences for their roles in a major embezzlement and money laundering scandal that led to the company's downfall. While their prison terms were shortened, the court significantly increased the financial penalties imposed on both individuals.
Revised Sentences and Fines
The appellate court sentenced eFishery co-founder and former CEO Gibran Huzaifah to six years in prison, a reduction from the initial nine-year term handed down by a lower court. Concurrently, his fine was doubled from one billion to two billion rupiah. The court affirmed that Huzaifah was "legally and convincingly proven guilty" of the charges brought against him.
In a separate ruling for Andri Yadi, the former vice president of artificial intelligence, the court reduced his sentence from seven years to four. Similar to Huzaifah, Yadi's fine was also increased to two billion rupiah. The judges ordered that the time both men have already spent in detention be credited toward their sentences and that they remain in custody.
Ongoing Legal Proceedings
The legal saga is not yet concluded, as public prosecutors have filed cassation petitions with Indonesia's Supreme Court for both cases. This move seeks a review of the appellate court's rulings, focusing on whether the law was applied correctly rather than re-evaluating the facts. The outcome of this appeal could potentially alter the reduced sentences handed down by the High Court.
In contrast, former vice president of corporate finance Angga Hadrian Raditya, who was also convicted in the scandal, chose not to appeal his criminal conviction. He accepted the Bandung District Court's original sentence of nine years' imprisonment and a one billion rupiah fine. This decision separates his legal path from that of his former colleagues who sought sentence reductions.
New Civil Lawsuits Emerge
The fallout from eFishery's collapse has expanded into civil court, with Andri Yadi filing a lawsuit against the company and several individuals, including its co-founders. The suit alleges unlawful acts related to eFishery's acquisition of his software company, DycodeX. Yadi is seeking a total of 125 billion rupiah, equivalent to approximately $7 million, in material and immaterial damages.
Separately, Angga Hadrian Raditya has initiated his own civil action against PT Multidaya Teknologi Nusantara, eFishery's Indonesian entity. His lawsuit claims unilateral termination of employment and seeks nearly 32 billion rupiah, or about $1.8 million, in unpaid compensation. The claim includes salary during his suspension, penalties, and a significant incentive bonus tied to the company's fundraising activities.
The Collapse of an Agritech Giant
The criminal convictions and civil disputes stem from the dramatic collapse of eFishery, once a celebrated startup with a valuation exceeding $1 billion. The company, known for its automated feeding technology for fish and shrimp farms, is now associated with one of Southeast Asia's largest startup failures. Its downfall was triggered by the discovery of a massive accounting fraud scandal.
The financial manipulation, which occurred between 2018 and 2024, resulted in staggering losses for investors amounting to an estimated $300 million. The list of affected backers includes prominent global firms such as SoftBank Group Corp., Temasek Holdings, and Peak XV. This high-profile case has since served as a cautionary tale within the regional technology and investment community.
While the reduced sentences offer a degree of resolution in the criminal case, the eFishery saga is far from over. The pending Supreme Court appeal and emerging civil lawsuits from former executives highlight the complex and multifaceted legal aftermath of the company's collapse. These developments continue to unfold, leaving a lasting impact on investor confidence and corporate governance in the region's tech ecosystem.