Indonesian officials have halted PT MNC Land’s work on the Lido resort project, which spans 3,000 hectares and includes properties branded by former President Donald Trump. The government cited environmental concerns and poor water management as the reasons for this suspension.
The Lido project is located about 60 kilometers south of Jakarta and features a golf course associated with Trump. Membership for this course opened in 2023. The Trump Organization was set to manage a luxury hotel and residential units at the site, with MNC Land as the main developer.
According to Indonesia’s environment ministry, issues with rainwater management have led to severe damage to Lido Lake. The lake’s size has shrunk dramatically from 24 to 12 hectares because of sediment buildup. Officials also noted that MNC Land did not follow environmental assessment guidelines approved by the government.
Ardyanto Nugroho, a director at the environment ministry, expressed concern about the disconnect between environmental policies and actual development work. He stressed the need to protect natural resources.
MNC Land, led by entrepreneur Hary Tanoesoedibjo, responded by stating that the sedimentation issues existed before they took over the property in 2013. The company claims to have been working since 2016 to preserve the lake during construction.
The Trump Organization has not yet commented on the situation.
This project gained traction earlier in 2023 when it received special economic zone status from former President Joko Widodo. This status offers tax perks and more flexible regulations. Aside from the resort, MNC Land also plans to develop a theme park and a movie studio.
The pause in development comes at a time of economic uncertainty. Recent policy suggestions from Trump regarding international trade and issues in the Middle East have raised concerns among investors. His administration has instituted new tariffs on imports from Canada, China, and Mexico, which could impact various sectors of the U.S. economy.
Moving forward, MNC Land must submit a new environmental assessment for government approval to continue their project.
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