A multi-billion-dollar tourism project in Java, Indonesia, linked to U.S. President Donald Trump, has been halted, escalating tensions between Indonesia and the US. The Indonesian government blames the project’s poor water management for severe environmental damage, including the shrinking of Lido Lake.

The project, spearheaded by Indonesian billionaire and politician Hary Tanoesoedibjo, has been under development since 2014 as part of a grand vision for a luxury resort community near Jakarta. The Trump Organization was brought in to manage high-end hotels, golf courses, and country clubs, with the Trump-branded properties alone valued at over $300 million (€290 million).

However, the Indonesian Environment Ministry has now intervened, citing mismanagement of rainwater at the resort as a key factor in the dramatic reduction of Lido Lake. According to the ministry’s statement, sedimentation caused by the development has halved the lake’s size to 120,000 square meters.

A High-Stakes Environmental Battle

The Lido City project, which was granted special economic zone status by former President Joko Widodo in 2023, is part of Indonesia’s larger tourism expansion strategy. The government has been eager to develop new destinations beyond Bali, but conservationists have long raised concerns about the impact on Java’s fragile ecosystems.

Gunung Gede Pangrango National Park, which borders the project, is home to rare species such as the Javan slow loris, Javan leopard, and the critically endangered silvery gibbon. Conservation groups argue that rapid development threatens crucial water sources and biodiversity in one of Java’s last remaining virgin tropical forests.

“The Lido area is one of the most important watersheds of the Cimandiri River,” said Meizani Irmadhiany, Executive Chair of Konservasi Indonesia. “The slope contours serve as a significant water catchment area, and the area planned for the project is located on critical land.”

Developers Push Back

PT MNC Land, the company behind the development, has denied sole responsibility for the sedimentation in Lido Lake. Company President Director Budi Rustanto stated that other projects in the area—including government buildings and community settlements—also contribute to the problem.

Rustanto emphasized that MNC Land had adhered to environmental regulations, including the AMDAL impact assessment, and had been working since 2013 to address the lake’s shallowing, including ongoing dredging plans.

Despite the company’s assurances, the Environment Ministry remains firm, warning of potential legal consequences. Officials are awaiting further laboratory test results before deciding on enforcement actions.

A Turning Point for Tourism Development?

Environmentalists view the government’s intervention as a major step toward holding developers accountable for ecological damage. “It is time for the business sector to prioritize environmental principles,” said Irmadhiany, stressing that sustainable development is crucial for both local communities and long-term business viability.

As the Indonesian government weighs its next move, the fate of the Trump-linked Lido City project—and its impact on one of Java’s most sensitive ecosystems—remains uncertain.

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