eFishery Entangled in Financial Report Manipulation Case
eFishery, aquaculture startup that previously achieved unicorn status, now faces a major financial scandal. The latest investigation reveals that eFishery is suspected of manipulating financial reports since 2018 by presenting two different versions. The external report shows a profit of Rp261 billion, while the internal report indicates a loss of up to Rp578 billion.
Revenue Overstatement and Its Impact
Additionally, eFishery is alleged to have overstated its revenue by 4.8 times or about US$600 million. The company also claims to have 400,000 feeding facilities, while the actual number is only about 24,000. This fact further erodes investor confidence and raises concerns about the transparency of startup businesses in Indonesia.
Mass Layoffs and Recovery Efforts
As a result of this scandal, eFishery has terminated employment for 100 employees in January 2025 and plans to lay off an additional 300 employees in February 2025. The company has appointed FTI Consulting as interim management to stabilize business conditions and restore investor confidence.
Lessons from the eFishery Case for Indonesian Startups
This case serves as a warning for startups in Indonesia to prioritize transparency in financial reporting. Data manipulation not only harms investors but can also destroy a company's reputation and sustainability. Therefore, startups need to implement honest accounting systems, comply with financial regulations, and maintain stakeholder trust.
