eFishery, once celebrated as a trailblazer in Indonesia's aquaculture industry, now finds itself embroiled in controversy. Recent audit findings have raised questions about the company's financial integrity and the compensation of its CEO, Gibran Huzaifah.

Allegations of Financial Discrepancies

An internal investigation, prompted by a whistle-blower's allegations, suggests that eFishery may have inflated its revenue and profit figures over several years. The preliminary report estimates that management exaggerated revenue by nearly US$600 million in the first nine months of 2024, accounting for over 75% of the reported figures. Consequently, the company's actual profit of US$16 million during this period is now believed to be a US$35.4 million loss.

CEO's Compensation Under the Microscope

Amid these revelations, reports have surfaced claiming that CEO Gibran Huzaifah received a gross monthly salary of approximately 1.28 billion rupiah (around US$85,000). However, Huzaifah has refuted these claims, labeling them as "untrue." He asserts that his monthly pay for at least four months in 2024 was lower than reported, supported by salary slips and bank statements.

Impact on eFishery's Reputation

The allegations have significantly impacted eFishery's standing in the startup community. Once valued at US$1.4 billion, the company's reputation is now under threat. Investors, including prominent firms like SoftBank Group Corp. and Temasek Holdings Pte, are closely monitoring the situation as the investigation unfolds.

The Broader Implications for Indonesian Startups

This scandal underscores the critical importance of transparency and accurate financial reporting in the startup ecosystem. As Indonesian startups continue to attract substantial investments, maintaining investor trust through ethical practices is paramount. The eFishery case serves as a cautionary tale for other startups to uphold integrity and accountability.

Conclusion

eFishery's current predicament highlights the challenges that can arise when financial discrepancies come to light. As the investigation continues, the company's leadership and stakeholders must navigate the fallout to restore trust and ensure the long-term viability of the business.