Beware of Startup Fraud: Investors Strengthen Audits and Governance
JAKARTA — The risk of fraud in startup investments is increasingly under the spotlight amid the rapid growth of an industry that is not yet fully mature. This situation is prompting venture capital players to strengthen forensic audits and risk management as steps to safeguard market confidence.
The issue came to the fore during the Halal Bihalal event and executive workshop organised by the Indonesian Venture Capital Association for Startups (Amvesindo) together with PwC Indonesia at World Trade Center 3 (WTC 3) in Jakarta on Wednesday, 8 April 2026.
The event was attended by 63 Amvesindo member companies, comprising 47 firms in the Jabodetabek region and 16 from outside Jabodetabek. In addition, the event also involved other ecosystem players such as startups, research companies, and supporting industry professionals.
This post-Eid al-Fitr moment was utilised not only to strengthen relations but also to discuss fundamental industry challenges amid global economic dynamics, particularly related to investment risks.
Amvesindo Chairman Eddi Danusaputro stressed that strengthening governance is an urgent need to ensure the industry continues to grow healthily.
“Through this Halal Bihalal momentum, we aim to strengthen our sense of togetherness while encouraging closer synergy among members. Amid economic challenges and startup industry dynamics, governance and risk management are key factors. Not only to sustain business continuity but also to ensure the industry can grow healthily while still supporting innovation,” said Eddi in a press statement on Saturday (11/4/2026).
PwC Indonesia Director Sacha Winzenried stated that the developing nature of the industry means many venture capital companies do not yet have strong control systems.
“As the industry is still developing, many venture capital companies are at an early stage and do not yet have adequate systems and controls. This makes strengthening governance and risk management a key factor in preventing mismanagement or fraud, including maintaining the industry’s reputation in the eyes of the market,” said Sacha.
OJK Director of Supervision for Financial Institutions and Venture Capital Companies Maman Firmansyah noted that weaknesses in the early stages will have long-term impacts on emerging risks.
“OJK views that the approach to industry health starts from the first pillar, namely governance, how business processes are run, how debtor and investee selection is conducted, and how decisions are made. If governance is not strong from the start, then risks and problems in subsequent stages will be difficult to avoid,” said Maman.