The South Jakarta District Prosecutor’s Office has detained three individuals in connection with an ongoing investigation into alleged corruption and money laundering tied to the management of investment funds disbursed by MDI Ventures and BRI Ventures to agritech startup PT Tani Group Indonesia (TaniHub) and its affiliates between 2019 and 2023.
According to a local media report, the three individuals—identified by their initials—are MDI Ventures chief executive officer DSW [Donald Wihardja]; former Tanihub president director IAS [Ivan Arie Setiawan]; and ETPLT, a former director at the company [whose identity could not be independently verified]. They were officially detained on July 28 and will remain in custody for 20 days until August 16.
MDI Ventures spokespersons confirmed the matter and said they will cooperate with the legal process.
The prosecutor’s office said the case stems from a $25-million investment made jointly by MDI Ventures and BRI Ventures into TaniHub and affiliated entities.
“The detentions are part of an investigation into alleged corruption and money laundering in the management of those funds,” South Jakarta Prosecutor Haryoko A. Prabowo said.
DSW is currently held at Salemba Detention Center, IAS at the South Jakarta branch of the facility, and ETPLT at Cipinang Detention Center.
Suyanto Sumarta, head of the Special Crimes Division at the South Jakarta Prosecutor’s Office, said investigators have conducted a series of actions, including raids at several locations in Greater Jakarta, seizure of evidence, and the questioning of over 20 witnesses and multiple investment experts.
“Investigators recovered electronic devices, bankbooks, ATM cards, and other documents supporting the alleged violations,” said Sumarta.
Preliminary findings suggest that DSW allegedly approved the disbursement of investment funds unlawfully while IAS and ETPLT are suspected of manipulating company data to secure funding from the two investors, which was then misappropriated for personal use.
The investigation is ongoing, with authorities examining the possible involvement of other parties and tracing the flow of the allegedly misused funds.
Problems galore
The latest developments come after Indonesia’s Financial Services Authority (OJK) revoked the business licence of PT Tani Fund Madani Indonesia (TaniFund), the P2P lending arm of TaniHub Group, in May 2024.
The revocation followed TaniFund’s failure to meet minimum equity requirements and comply with regulatory directives. OJK had imposed a series of supervisory actions and administrative sanctions before the licence termination, but the platform’s management and shareholders failed to resolve its structural issues within the prescribed timeframe.
Following a growing number of complaints from lenders and other legal issues, OJK handed over related criminal cases to law enforcement agencies for further investigation.
Launched in 2017, TaniFund aimed to connect unbanked and underbanked farmers with lenders to support agricultural production. However, lending in the sector presented its own set of challenges due to unpredictable yields and market volatility.
In July 2022, DealStreetAsia reported on TaniFund’s cash flow issues, declining loan quality, and potential fraud incidents. In 2023, it faced lawsuits related to non-payments and fraud allegations.
As of January 2023, its TKB90 rate—an OJK metric measuring repayment performance—stood at just 36.07%, meaning nearly 64% of its loans were non-performing. This made TaniFund the worst-performing P2P lender registered with the OJK at the time.
In December 2022, TaniHub creditors filed for a temporary suspension of debt payments (PKPU) with the Jakarta district court, citing concerns over the company’s ability to meet its financial obligations.
