Gita Sjahrir, Senior Advisor at TBS Energi Utama, and Jeremy Au talked about the complexities of corporate governance and accountability within emerging markets. They discussed the eFishery scandal, the Pertamina corruption case, and the broader implications for economic growth and investor trust. 

1. Investor Due Diligence: Gita and Jeremy highlighted the need for investors to go beyond financial reports and conduct on-ground audits to detect fraud early.

2. Impact of Fraud: They discussed how fraud not only inflates financials but also demotivates teams by reducing the urgency for operational improvements.

3. Founder Accountability: They emphasize that while investors play a role, founders are ultimately responsible for corporate governance and ethical leadership.

4. Valuation Risks: High early valuations create unrealistic expectations, making it harder for startups to deliver sustainable growth.

5. Government and Public Roles: Citizens are increasingly pushing for consequences in corruption cases, as seen in the Pertamina scandal.

6. Fuel Subsidies vs. EV Adoption: They analyzed how fuel subsidies in countries like Indonesia and Malaysia slow down electric vehicle adoption and market competitiveness.

7. The Cost of Poor Communication: Governments that fail to clearly communicate policy shifts, like subsidy reductions, can trigger public backlash and economic uncertainty.

8. Strategic Energy Transitions: They argued that Southeast Asia needs a phased, well-communicated shift toward sustainable energy to ensure long-term stability.

Watch, listen or read the full insight at https://www.bravesea.com/blog/corporate-finance-failure-impact

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