[JAKARTA] Indonesia has pulled the plug on the billion-dollar MNC Lido City Special Economic Zone (SEZ) project, a high-profile development backed by billionaire Hary Tanoesoedibjo’s MNC Group, one of the country’s largest conglomerates with ties to US President Donald Trump’s company.
The government temporarily suspended the project’s permit on Friday (Feb 7) for 90 days, citing environmental and administrative violations linked to its golf course and ecopark development, according to a statement by the Ministry of Environment.
It noted that these violations have caused ecological damage around the site, threatening the MNC Lido City SEZ – a sprawling tourism complex featuring residential, commercial and leisure developments, including integrated resorts.
Located in Bogor, West Java, just two hours from Jakarta, the 1,040-hectare project was set to attract up to 33.4 trillion rupiah (S$2.8 billion) in investment by 2030, with plans to generate 29,000 jobs.
Rizal Irawan, deputy for law enforcement at the Ministry of Environment, said an investigation conducted since January found that the project’s development deviated from the master plan, and that it failed to build adequate water containment systems, leading to sedimentation.
The official added that he has given the company a 90-day deadline to comply with the ministry’s recommendations.
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“If the company fails to follow the ministry’s recommendations by 90 days, various sanctions could be imposed, including permit suspension or even criminal charges,” he said in a press conference.
Meanwhile, MNC Land, the project’s developer, pointed out that it had not received prior notice from the ministry regarding the alleged violations.
The company also maintained that it had constructed sufficient infrastructure to prevent sedimentation, according to the Antara news agency.
Shares of Indonesia Stock Exchange-listed MNC Land fell nearly 4 per cent at the close of trading on Friday.
Trump-affiliated
The MNC Lido City project was granted SEZ status by then president Joko Widodo’s administration in 2023, making the company eligible for a 20-year tax exemption incentive.
It has Trump’s backing, reinforcing the widely perceived notion of his close ties with Tanoesoedibjo, who was also spotted at the US president’s inauguration in Washington last month.
The Trump International Golf Club, Lido, a luxury 18-hole golf course designed by former world No 1 golfer Ernie Els and operated by Trump Golf, was officially launched in mid-2024 in MNC Lido City. MNC Land also partnered Trump Hotel Collection to develop a luxurious resort in Tanah Lot, Bali.
The MNC Lido City project, launched in 2016, is part of Tanoesoedibjo’s ambitious expansion into the property sector. The entrepreneur, media mogul and politician holds a diverse business portfolio, spanning media, real estate and finance.
