The Indonesian government has suspended a $1 billion real estate development project near Jakarta that was set to include luxury complexes bearing the brand of U.S. President Donald Trump.
Officials announced on Friday that the decision was based on environmental damage concerns.
Project Overview
The project was intended to feature hotels, residences, and golf courses under the Trump brand as part of “MNC Lido City” – a theme park initiative developed by the Chinese state-owned company MCC. The ambitious deal between MCC and the Indonesian entertainment company MNC Land was signed in 2018, according to French news agencies.
The area, meant to be part of a world-class integrated tourism resort, was also expected to receive up to $500 million in Chinese government loans.
Environmental Violations
However, on Thursday, Indonesian Environment Minister Hanif Faisal Norofik ordered the suspension of the project after a field inspection uncovered numerous violations. Senior ministry official Rida Irwan explained at a press conference on Friday that land-clearing activities had reportedly led to sediment buildup in Lake Lido, rendering the lake shallow.
Satellite images released by the ministry showed that the lake’s area in West Java had shrunk from 24.7 hectares to 11.9 hectares since construction began. Authorities also noted significant discrepancies between the approved environmental plans and the actual construction carried out by PT MNC Land Lido, a subsidiary of MNC Land. Irwan added that the government would impose administrative sanctions.
Company Response
In response, PT MNC Land Lido stated that the sedimentation occurred before the company took responsibility for the Lido area in 2013—a claim they supported with aerial images from that year. The company noted that construction began in 2016 and that one of its goals was to address the sedimentation problem.
The project is a key component of a larger plan to develop a special economic zone covering 3,000 hectares. Notably, Chinese companies were not expected to be directly involved in building or financing the Trump-branded properties.
Impact on Tourism Investments
According to sources including the Associated Press, this decision represents a major setback for Trump’s international real estate ventures, especially amid growing global concerns over environmentally detrimental investments.
Although Chinese companies were not slated to participate directly in the construction of Trump-branded properties, the substantial Chinese financing backing the area’s development could face further challenges due to the environmental controversy.
Indonesian businessman and politician Harry Tanusoidibego—who is leading the project—had previously stated that fully developing the area would take over a decade and cost up to $3 billion, with more than $300 million earmarked for Trump-associated properties.
Reports indicate that Tanusoidibego has maintained close ties with Donald Trump, having signed a management agreement with the Trump Organization in 2015 and attending Trump’s inauguration earlier this year.
Environmental Concerns and Activist Reactions
The project has drawn sharp criticism from environmental activists, who warn that it is located in a protected tropical rainforest area that is home to rare species such as the Javan mountain eagle and the silver langur monkey.
Meizani Iremadhiani, head of Conservasi Indonesia, stressed that the Lido area is not merely investment land but a vital part of West Java’s ecosystem. “Ignoring its ecological importance could have catastrophic consequences for local communities and nature,” she said. Additional reports suggest that the government is considering new measures to protect sensitive environmental areas and prevent further degradation.
At present, the future of the project remains uncertain. MNC Land will not be allowed to proceed without substantial environmental remedial actions, and with mounting local and international pressure, Indonesia may soon reevaluate its standards for issuing licenses for large-scale developments.
