The South Jakarta District Attorney has detained three individuals suspected of corruption and money laundering related to investment funds channeled to TaniHub Group between 2019 and 2023.

The suspects include the Director of MDI Ventures, a former CEO of TaniHub, and a former Director of TaniHub.

Authorities allege that the suspects manipulated company data to secure investments and used funds for personal interests.

The detention began on July 28 and will continue until at least August 16.

How MDI Ventures and BRI Ventures Became Entangled in the TaniHub Scandal

MDI Ventures and BRI Ventures, both venture capital firms, invested approximately US$25 million (IDR 400 billion) in TaniHub and its affiliates.

These investments were made during a period when the agri-tech startup was expanding operations and pursuing Series B funding.

Investigators believe that a former TaniHub executive approved investment fund disbursement unlawfully, while two others falsified financial records to attract capital from these institutional investors.

Timeline of Layoffs, Defaults, and License Revocation at TaniHub and TaniFund

Following the Series B funding of US$65.5 million (IDR 942 billion) in May 2021, led by MDI Ventures and supported by other firms including BRI Ventures, TaniHub's performance quickly declined.

By early 2022, the company laid off staff and closed warehouses in Bandung and Bali.

Meanwhile, its fintech lending arm, TaniFund, recorded a 63.93% default rate on loans by March 2023 and failed to return funds to lenders.

The Financial Services Authority (OJK) officially revoked TaniFund’s business license on May 3, 2024.

Prosecutors Investigate Fictitious Projects and Money Laundering Allegations

Since May 2025, rumors of fictitious projects involving subsidiaries of Telkom Group and TaniHub have emerged. Student groups and media reports called for further investigation.

Authorities are now probing whether funds were redirected through fake contracts or unauthorized activities.

The three suspects are being held at separate detention centers, including Salemba and Cipinang.

Investor Lawsuits and Ongoing Legal Proceedings Raise Industry Concerns

TaniFund lenders have filed three lawsuits at the South Jakarta District Court, totaling IDR 471.2 million.

The OJK has instructed TaniFund to convene a shareholder meeting and appoint a liquidation team, which was officially formed by October 2024.

Regulators stated that the liquidation process must be conducted fairly and independently to resolve remaining obligations.

Investigations are ongoing, and prosecutors continue tracing the flow of funds and identifying potential accomplices.

PHOTO: TECH IN ASIA

This article was created with AI assistance.