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View all search resultsStart-up cases test line between failed bets and criminal acts
The case centers on US$25 million in investments made between 2019 and 2023 by BRI Ventures and MDI Ventures, the venture capital arms of state-owned firms BRI and Telkom, respectively, into agritech start-up PT Tani Group Indonesia (TaniHub).
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Farmer partners of TaniHub pose for a photo while standing in a lettuce farm in Bedugul, Bali. (Courtesy of TaniHub)
C
orruption cases involving executives at state-owned enterprise (SOE) venture capital firms have raised concerns about how far criminal law can reach into business and investment decision-making. Experts argue that investment decisions should not be judged solely by their outcomes, but rather by whether they are deemed reasonable based on an assessment at the time.
The case centers on US$25 million in investments made between 2019 and 2023 by BRI Ventures and MDI Ventures, the venture capital arms of state-owned firms BRI and Telkom, respectively, into agritech start-up PT Tani Group Indonesia (TaniHub). Prosecutors allege that executives at both VC firms violated investment regulations.
Authorities estimate state losses at around $5 million, arguing that the investments were approved despite procedural irregularities and inadequate due diligence. Investigators allege that the venture capitals relied on data provided by the company without sufficiently verifying its accuracy.
Founded in 2015 and once among the country’s earliest agritech start-ups, TaniHub later struggled operationally, laid off employees and entered debt restructuring followed by a period of rapid expansion that failed to deliver profitability, turning what began as a high-profile tech bet into a closely watched case in the sector.
The Central Jakarta District Court is expected to hand down its verdict on Thursday after months of hearings involving nine defendants, including six individuals and three corporate entities affiliated with the start-ups.
Former BRI Ventures president director Nicko Widjaja faces 11 years in prison while former vice president of investment William Gozali faces nine years.
Prosecutors are also seeking 12-year prison terms for MDI Ventures CEO Donald Wiharja and vice president of investment Aldi Adrian Hartanto, with all four facing fines of Rp 1 billion ($56,500).
