The recent financial scandal involving eFishery, Indonesia's prominent agritech unicorn, has sent shockwaves through the nation's startup ecosystem. Allegations of inflating revenues by approximately $600 million have not only tarnished eFishery's reputation but also raised concerns about governance practices within Indonesian startups.

Dina Dellyana, a lecturer and Head of the Business Incubator at SBM ITB, emphasized that the eFishery case serves as a stark reminder of the perils of prioritizing rapid growth over integrity. She noted that such incidents could lead to a systemic impact, especially for startups in the midst of fundraising, as investors become increasingly cautious.

The repercussions of this scandal are evident, with several venture capitalists now adopting a more selective approach to funding Indonesian startups. The fear of encountering similar issues has prompted a reevaluation of investment strategies within the tech sector.

Finance expert Yunieta Anny Nainggolan from SBM ITB highlighted that financial manipulation is a grave violation stemming from weak corporate governance. She pointed out that startups often become overly fixated on valuations and rapid expansion, neglecting the fact that investor trust hinges on transparency and integrity.

In response to the crisis, it has been suggested that eFishery undertake significant measures to restore trust. These include publishing results from independent audits and restructuring management to incorporate leaders with credible track records. Such steps are deemed crucial for demonstrating a genuine commitment to rectifying issues and rebuilding credibility.

The eFishery scandal underscores the necessity for robust corporate governance within Indonesia's startup landscape. It serves as a cautionary tale, emphasizing that while innovation and growth are vital, they must not come at the expense of ethical standards and transparency.