JAKARTA, Indonesia — Officials in Indonesia have announced the suspension of a tourism development project linked to former U.S. President Donald Trump due to concerns regarding water management and environmental impacts. This decision was made public on Friday.
The project, sprawling over 3,000 hectares (11.6 square miles), is spearheaded by Hary Tanoesoedibjo, Trump’s Indonesian business partner, who attended Trump’s inauguration last month. Their collaboration began in 2014 when Tanoesoedibjo’s company, MNC, sought an operator for luxurious “six-star” resorts planned for locations including Bali and Jakarta.
Under their agreement, the Trump Organization was set to manage hotels, golf courses, and country clubs for a fee from the revenue generated, with the investment estimated at around $700 million from MNC’s side. Tanoesoedibjo had indicated that the entire development of the Lido City area would extend over a decade and could require up to $3 billion, with the Trump-branded properties accounting for more than $300 million of that cost.
The project has been promoted for several years. In 2023, special economic zone status was granted to the development by then-President Joko Widodo, allowing MNC Land to benefit from tax incentives and relaxed regulations regarding permits. Located in Gunung Gede Pangrango, approximately 60 kilometers (37 miles) south of Jakarta, the area includes a significant “Trump Community,” which has developed since 2014, complete with improved infrastructure such as a new toll road and a golf course that started accepting members the previous year.
Although classified as a private venture, Lido City aligns with the Indonesian government’s initiative to establish additional tourist hubs akin to Bali, with goals of creating a massive theme park among other developments. However, this expansion has raised alarms among conservationists due to the potential threat it poses to habitats of critically endangered species native to the vast Indonesian archipelago.
The Environment Ministry expressed its concerns in a statement, noting that improper management of rainfall runoff at the resort has led to sediment buildup in Lido Lake, effectively reducing its size to 12 hectares (30 acres). Ardyanto Nugroho, the ministry’s director in charge of environmental issues, stressed the significant discrepancy between environmental strategies and their execution, which threatens the preservation of natural resources. His team awaits further lab results to determine the next steps in implementing environmental law enforcement measures.
Nugroho asserted the government’s commitment to environmental preservation and plans to take decisive action against any violations that harm ecosystems and local communities. Signs have been placed around Lido Lake indicating that the project is currently under official supervision.
Gunung Gede Pangrango is notable for being home to some of the last remaining untouched tropical forests in Java, with only 2% of its original forest cover left intact. This area boasts a rich variety of wildlife, including over 2,000 plant species and about 250 different bird species. Notable endangered species include the Javan slow loris, the Javan leaf monkey, and the critically endangered Javan leopard, among others.
Budi Rustanto, President Director of PT MNC Land, contested claims that the project was responsible for the sedimentation of Lido Lake, attributing this issue instead to multiple developments occurring in the surrounding areas, including government facilities and existing residential zones. Rustanto maintained that his company adhered to environmental impact guidelines and has been actively working since 2013 to address the lake’s shallow condition, including planning for dredging operations.
Environmental advocates welcomed the suspension of the project as a tangible effort from the government to address environmental oversights related to the Special Economic Zone. Meizani Irmadhiany, Executive Chair of Konservasi Indonesia, highlighted the importance of the Lido region as a watershed for the Cimandiri River and as part of the Gunung Gede Pangrango National Park’s ecosystem. She urged the business sector to prioritize environmental principles, emphasizing the direct impact these decisions have on local communities, the environment, and sustained business success in the future.
