Indonesian authorities have ordered PT MNC Land to suspend development of its 3,000-hectare Lido resort project, which includes President Donald Trump’s branded properties, citing environmental violations and water management issues.
What Happened: The project, located 60 kilometers south of Jakarta, features a Trump golf course that began offering memberships in 2023. The Trump Organization is slated to operate a luxury hotel and residential properties at the site, with MNC Land serving as the developer, Reuters reported.
Indonesia’s environment ministry reported that mismanagement of rainwater at the resort has caused significant damage to Lido Lake, reducing its size from 24 to 12 hectares due to sedimentation. Officials also stated that MNC Land failed to adhere to government-approved environmental assessment guidelines.
“The mismatch between environmental plans and physical implementation has become a serious concern in an effort to preserve natural resources,” said Ardyanto Nugroho, director of environment supervision at the ministry.
MNC Land, led by tycoon and politician Hary Tanoesoedibjo, defended its position, stating that the sedimentation issues predated their 2013 acquisition of the property. The company claims it has actively worked to preserve the lake since beginning construction in 2016.
Trump Organization did not immediately respond to Benzinga's request for comment.
Why It Matters: The development gained momentum in 2023 when former Indonesian President Joko Widodo granted it special economic zone status, providing tax benefits and regulatory flexibility. MNC Land’s broader development plans include a theme park and movie studio.
The suspension comes amid broader market uncertainty, as Trump’s recent policy proposals regarding international trade and Middle East relations have sparked concerns among investors. Trump administration recently imposed new tariffs on imports from Canada, China, and Mexico, potentially affecting various sectors of the U.S. economy.
To resume development, MNC Land must submit a new environmental assessment for approval, according to ministry spokesperson Sasmita Nugroho.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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