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).
Farmer partners of TaniHub pose for a photo while standing in a lettuce farm in Bedugul, Bali. (Courtesy of TaniHub)
Corruption 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.
