Key facts
- Four former executives from MDI Ventures and BRI Ventures were jailed for corruption.
- The executives received sentences ranging from two to five years.
- The case involves a $25 million investment in the failed agricultural startup Tanihub.
- TaniHub's lending affiliate, TaniFund, was ordered to liquidate in May 2024.
- The convictions are part of a series of scandals impacting Indonesia's tech and venture capital ecosystem.
Four former executives from Indonesian state-owned venture capital firms, MDI Ventures and BRI Ventures, have been convicted of corruption and sentenced to jail for their roles in a $25 million investment in the failed agricultural startup Tanihub. The sentences range from two to five years.
Donald Wihardja, former CEO of MDI Ventures, and Nicko Widjaja, founder and former CEO of BRI Ventures, are among those detained and convicted. The investigation centers on allegations of unlawful approval of fund disbursements and the diversion of investment funds for personal use by Tanihub executives. William Gozali and Aldi Adrian Hartanto, former investment VPs at BRI Ventures and MDI Ventures respectively, were also detained in connection with the case.
Tanihub, founded in 2016, aimed to connect farmers with consumers and retailers. After a $65.5 million Series B round in 2021 led by MDI Ventures, the company shifted focus and expanded its lending arm, TaniFund. Reports suggest TaniFund used venture capital funds to cover loan defaults, ultimately leading to the company's liquidation by Indonesian financial regulators in 2024. TaniHub's business license was suspended in May of the previous year.
These convictions come amid a series of scandals that have rocked Indonesia's tech and venture capital ecosystem, raising concerns about financial fraud, money laundering, and misappropriation of funds. The TaniHub case is particularly significant as it marks the first time high-profile tech executives have been arrested on camera, sending a strong signal to the market and global investor community. The involvement of state-owned enterprises in venture capital adds another layer of complexity, as investors are accountable to both the government and taxpayers.