Amid allegations of unpaid salaries and fees, accusations of poor governance standards, and alleged suspension of operations, Indonesian waste management startup Octopus’s chief marketing officer (CMO), Hamish Daud, recently announced his resignation.
Daud, who cited “personal reasons”, also revealed on his Instagram account that he was stepping down from his role as a co-founder of the firm.
Octopus, currently embroiled in negative publicity regarding its management practices, has also updated its Instagram page—all previous posts have been deleted, leaving only one stating, “Octopus will be back soon”. This suggests that the company may be undergoing a transitional phase in its business operations.
Two employees, who spoke to DealStreetAsia on Tuesday on the condition of anonymity, stated that they had not received any updates from the management regarding their pending wages. One source expressed doubt that the company would resume operations anytime soon, stating, “As far as I know, salary payments for employees have not been realised until now.”
While they were aware of the announcement on Octopus’s Instagram page, they said they were not informed of any future business plans by the company.
Earlier in January, DealStreetAsia reported that the company had failed to pay salaries to its employees and fees to waste collectors (known as Pelestaris) for several months. This has resulted in temporary furloughs due to delayed salary payments since October last year.
In an interview last month, CEO Moehammad Ichsan acknowledged a delay in salary payments since October 2023, attributing it to a payment gap from the company’s clients that disrupted cash flow. However, he refuted claims of a temporary furlough for employees, stating that the startup had been making partial salary payments and assured that the issue would be resolved by the end of January.
DealStreetAsia has reached out to Octopus CEO for comment.
Octopus was established in 2020 by CEO Ichsan, along with local celebrity Hamish Daud, entrepreneur Dimas Ario, and former Coca-Cola Amatil Indonesia executive Niko Adi Nugroho.
The startup links users with local waste collectors who purchase and collect products such as plastic and electronic waste. It also equips waste collectors with an app to facilitate order pickups and pricing arrangements.
Besides unpaid salary disbursement, Octopus also has been grappling with a range of allegations involving its C-suite, from financial fraud allegations to claims of employee harassment. The CEO acknowledges these allegations but vehemently denies them. He added that the startup is struggling to raise fresh funding due to these negative rumours.
The company has opted for a voluntary audit in March before proceeding with fundraising efforts. Openspace, the lead investor from the last funding round in July 2022, has also initiated an audit and appointed an independent auditor.
A recent report by TechinAsia said the company’s CEO shared misleading information about his academic degrees on multiple public platforms, an accusation he has denied.