While the new U.S. president is trying to annex Canada and claim Greenland, one of his business projects in Indonesia has hit serious trouble. The Trump-branded luxury golf resort, planned 60 kilometers from Jakarta, has been halted indefinitely after authorities accused its developer, MNC Land, of causing severe environmental damage to Lido Lake.
The Indonesian Ministry of Environment has accused MNC Land of mismanaging drainage systems, leading to sediment buildup in Lido Lake. The lake’s surface area has shrunk by half, from 24 hectares to just 12 hectares, with 2 hectares of water lost entirely. As a result, construction on the project—the largest of its kind—has been completely stopped.
In response, MNC Land denied responsibility, stating that sediment buildup in Lido Lake was an issue long before the company took over the site in 2013.
“Since construction began in 2016, one of our main goals has been to resolve the sedimentation problem. In fact, we are actively working to preserve the lake,” the developer said in a statement.
Despite these claims, the environmental ministry has sealed the project site, following a surprise inspection that confirmed multiple violations.
“We expect MNC Land to submit a new environmental impact assessment if they wish to continue developing Lido,” said Sasmita Nugroho, a ministry spokesperson.
Trump’s Indonesian Partner Faces Challenges
The golf resort and hotel in Lido was one of the flagship projects of MNC Group, led by Indonesian media mogul and billionaire Hary Tanoesoedibjo. The Trump Organization signed a deal with MNC back in 2016, but the project only gained momentum in 2023, after former Indonesian President Joko Widodo granted it Special Economic Zone (SEZ) status—providing tax incentives and fast-tracked approvals.
However, it seems that Indonesia’s new president is taking a different approach, putting the project’s preferential treatment on hold. Whether this will impact U.S.-Indonesia relations remains unclear. Trump himself may have bigger concerns than foreign business ventures at the moment.
The Lido development plan also includes a theme park and a film studio, but their future is now uncertain.
Meanwhile, the new U.S. administration has indirectly dealt a blow to Indonesia in another way.
• Trump has cut funding for renewable energy programs, which has affected an organization set to provide Bali with electric buses. Negotiations are ongoing, but the project is now at risk of cancellation.
• The much-anticipated Bali metro system, seen as a key solution to the island’s traffic problems, is also facing uncertainty.
“Private investors are reconsidering their commitments due to Trump’s policy decisions,” said I Gede Wayan Samsi, head of Bali’s transportation department.
With the Trump resort project stalled, environmental concerns mounting, and U.S.-Indonesia business ties under strain, it remains to be seen how relations between the two countries will evolve.
Sources: Jakarta Globe, CNBC Indonesia
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