Jeremy Au and Gita Sjahrir unpack Indonesia’s turbulence, from corruption scandals and startup economic uncertainty due to the collapse of eFishery. They contrast Singapore’s stability with Indonesia’s volatility, explore how weak rule of law erodes trust, and discuss how scandals damage both founders and investors. They also analyze the role of boards, GPs, and operating partners in strengthening Southeast Asia’s startup ecosystem.

02:00 Corruption scandals seem to show political motivation: The Tom Lembong case introduced the charge of “potential loss to the state,” which was never proven, and targeted him while other ministers who made similar decisions were left untouched.

04:46 Public mistrust deepens: Indonesians question whether corruption cases are genuine, ploys, or selective prosecutions, and many view them as witch hunts that worsen the disconnect between government and citizens. This has resulted in street protests.

09:19 Economic data raises skepticism: Official growth figures of above 5 percent confused the public, as weak indicators like falling auto sales, rising unemployment, and declining foreign direct investment suggest economic hardship is the reality.

12:12 Central bank cuts interest rates: The surprise decision was a move to boost growth to increase domestic investments and spending. Observers argued that transparency and equal rule of law remain the true foundation for long-term capital flows.

15:07 eFishery founder detained by Indonesia police: The founder’s detention followed a public Bloomberg interview in which he admitted to misconduct, reinforcing concerns that the scandal severely damaged trust in Indonesia’s startup scene. Law enforcement may improve public trust and deter bad-faith actors

19:33 Investor reaction turns punitive: Indonesia founders are asked to show profitability very early, to hit one million ARR within their first year, and to give up more than 20 percent equity even before a Series A.

28:17 VC operating partner model is missing: Unlike private equity, Southeast Asian venture capital rarely employs experienced operating partners - to support founders directly or fill board seats, leaving a gap in hands-on help and corporate governance.

Watch, listen or read the full insight at 

https://www.bravesea.com/blog/gita-sjahrir-indonesia-trust-crisis

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