Indonesian authorities have ordered a halt to the development of a tourism project linked to U.S. President Donald Trump due to concerns over water management and environmental impact, officials announced on Friday.
The project, spanning 3,000 hectares (around 11.6 square miles), was initiated by Trump’s Indonesian business partner, Hary Tanoesoedibjo, a billionaire and politician who attended Trump’s inauguration last month.
Tanoesoedibjo’s connection with Trump began in 2014 when his company, MNC, sought an operator for a series of luxury resorts. One resort was to be built on Bali, and the other near Jakarta. In exchange for a share of the revenue, the Trump Organization was to manage hotels, golf courses, and country clubs, with MNC investing about $700 million in the construction. These projects are part of a larger development plan by MNC.
In a January 2017 interview with The Associated Press, Hary Tanoesoedibjo, also known as Tanoe, mentioned that completing the entire 3,000-hectare Lido City development would take over a decade and could cost up to $3 billion. Of that amount, more than $300 million would be allocated for the Trump-branded properties.
The project has been promoted by the company for several years. In 2023, Indonesian President Joko Widodo granted it special economic zone status, which provided MNC Land with tax incentives and more flexible permits.
Since 2014, a large “Trump Community” has been developed in this area of Indonesia’s most densely populated island. Located in Gunung Gede Pangrango, about 60 kilometers (37 miles) south of Jakarta, it includes a new toll road leading to it, as well as a Trump golf course that began offering memberships last year.
Although it’s a private development, Lido City aligns with the Indonesian government’s goals to establish more tourist destinations similar to Bali. This is part of a larger plan that includes a massive theme park, but conservationists are concerned that such developments could threaten habitats for some of the country’s most endangered species.
The Environment Ministry issued a statement saying that poor management of rainwater at the resort has led to sediment buildup in Lido Lake, which has resulted in the lake becoming shallower and its size shrinking by half to just 12 hectares (30 acres).
Ardyanto Nugroho, the ministry’s director of environmental complaints, monitoring, and law enforcement, expressed concern over the gap between environmental plans and their actual implementation. He stated that his team is still awaiting laboratory test results to decide on the next steps for environmental law enforcement.
“We are committed to protecting the environment and will take strong action against any violations that harm the ecosystem and surrounding communities,” Nugroho said.
Local media reports showed a sign indicating the project is under “supervision” near Lido Lake.
Gunung Gede Pangrango is one of the last pristine tropical forests on Java, with only 2% of its original forest left. It is home to an extraordinary range of plant and animal life, including over 2,000 species of ferns, mosses, and flowering plants, as well as 250 bird species.
Endangered species in the area include the Javan slow loris, the world’s only venomous primate, the Javan leaf monkey, the critically endangered Javan leopard with fewer than 250 individuals, and the Javan hawk-eagle and Javan silvery gibbon.
The park houses a rehabilitation center for silvery gibbons rescued from the illegal wildlife trade. These gibbons, known for their lifelong monogamous bonds and unique, intense facial expressions, number fewer than 4,000 in the wild.
Budi Rustanto, President Director of PT MNC Land, denied that his company’s project caused the sedimentation in Lido Lake. He claimed the sedimentation also came from other developments, including office buildings, housing, and a government office compound in the surrounding area.
Rustanto stated that his company had adhered to the environmental impact analysis (AMDAL) requirements and criteria.
Budi Rustanto told Kompas news outlet that since 2013, his company has been working to address the issue of the lake becoming shallower, noting that 50% of the lake’s area lies within the development zone. He mentioned that ongoing efforts to resolve the issue, such as plans for dredging, would continue.
Environmentalists praised the government’s actions, viewing them as a sign of its commitment to addressing the failure of project management in considering the environmental impact of the development, particularly in the area designated as a Special Economic Zone.
Meizani Irmadhiany, the Executive Chair of Konservasi Indonesia, emphasized that the Lido area is a crucial watershed for the Cimandiri River and an important part of the Gunung Gede Pangrango National Park landscape. This area is vital not only for the people of West Java but also for the residents of Jakarta.
Meizani Irmadhiany explained that the slope contours are an important water catchment area, and the land designated for the project is located on critical land. She stressed that it is time for the business sector to prioritize environmental principles, as they have direct effects on the environment, surrounding communities, and even long-term business success, both before and during the development process.