Indonesia Blocks $1 Billion Trump-Branded Real Estate Project Over Environmental Concerns

Indonesia Blocks $1 Billion Trump-Branded Real Estate Project Over Environmental Concerns

In a move to protect its natural resources, Indonesian Environment Minister Hanif Faisol Nurofiq has ordered the halt of a massive real estate development outside Jakarta, citing environmental damage. The MNC Lido City project, a $1 billion entertainment park venture by Metallurgical Corporation of China (MCC) and Indonesia's MNC Land, was expected to be backed by up to $500 million in Chinese government loans.

The ambitious project included luxury hotels, residences, and a golf course, but the Indonesian government has been left with no choice but to intervene after discovering several environmental violations during a field inspection. According to senior official Rizal Irawan, the project's land clearing activities allegedly have caused sedimentation and shallowing in Lake Lido, which has more than halved in size since construction began.

Satellite images provided by the ministry revealed that Lake Lido, located in West Java province, has decreased from 24.7 hectares (61 acres) to 11.9 hectares. The authorities also found significant discrepancies between the approved environmental plans and the actual construction carried out by PT MNC Land Lido, a subsidiary of Indonesia's MNC Land.

As a result, the government will impose administrative sanctions on the project. While PT MNC Land Lido argued that sedimentation had occurred before they took charge in 2013, with aerial photos from that year proving its claim, the company began construction in 2016 with one of its aims being to tackle sedimentation.

The project is a key part of the 3,000-hectare special economic zone development, which has raised concerns over the potential impact on the environment. Although Chinese companies were not planned to be directly involved in constructing or financing the Trump-branded properties, this development highlights the importance of balancing economic growth with environmental protection.

This halt in project hosting is a significant step towards safeguarding Indonesia's natural resources and environment.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.