JAKARTA, Indonesia — Indonesian authorities have mandated a cessation of development on a tourism project associated with U.S. President Donald Trump, primarily due to water management and environmental issues, officials reported on Friday.

The project spans approximately 3,000 hectares (11.6 square miles) and is spearheaded by Trump’s business partner in Indonesia, billionaire Hary Tanoesoedibjo, who was present at Trump’s inauguration last month. Tanoesoedibjo’s relationship with Trump dates back to 2014 when his company, MNC, sought an operator for ambitious “six star” resorts, with plans for one in Bali and another near Jakarta.

In return for a share of the revenues, the Trump Organization agreed to oversee the management of hotels, golf courses, and country clubs projected to cost MNC around $700 million. As reported by AP News, comprehensive developments reaching up to $3 billion have been anticipated, with the Trump properties estimated at over $300 million.

Despite being a private venture, the Lido City project has been aligned with the Indonesian government’s drive to cultivate more tourist destinations akin to Bali. Special economic zone status was conferred on MNC Land in 2023 by then-President Joko Widodo, offering financial incentives. However, significant concerns have been raised regarding the project's environmental implications leading to this decision.

Recent statements from the Environment Ministry indicated that mismanagement in rainwater handling had resulted in alarming sedimentation in Lido Lake, diminishing its area to just 12 hectares (30 acres). “The mismatch between environmental plans and physical implementation is a serious concern in efforts to preserve natural resources,” said Ardyanto Nugroho, the ministry's director of environmental complaints, monitoring, and law enforcement.

He emphasized the commitment to environmental preservation, stating, “We committed to preserving the environment and will take firm action against violations that impact the ecosystem and surrounding communities.” Observers noted a sign indicating that the project is under “supervision” placed by the lake's side.

Gunung Gede Pangrango—a key ecological area housing one of Java's last virgin tropical forests—supports an immense variety of flora and fauna, including rare species like the Javan slow loris and the critically endangered Javan leopard. Authorities highlighted concerns about the potential devastation of habitats for these threatened species as development continued.

In response to the recent halt, executive chair of Konservasi Indonesia, Meizani Irmadhiany, welcomed the government’s action, reflecting a serious approach toward assessing the environmental impact of projects within special economic zones. “It is time for the business sector to prioritize environmental principles which have direct impacts on the environment and communities,” she articulated, emphasizing the significance of the area as a critical watershed for both West Java residents and those in Jakarta.

Budi Rustanto, President Director of PT MNC Land, refuted claims that project activities were solely responsible for the sedimentation problems, attributing them instead to nearby facilities and urban development. He acknowledged ongoing efforts to restore Lido Lake’s health, including plans for dredging and sustainability practices, underscoring the necessity of maintaining a balance between development and ecological stewardship.

This situation underscores the intricacies of balancing economic development with the protection of Indonesia’s rich and diverse natural landscapes, as authorities and environmental groups continue to monitor the situation closely.

For further developments and insights on this issue, refer to Los Angeles Times and HuffPost.