The Indonesian government has suspended a billion dollar real estate development project near Jakarta, which was scheduled to include luxury complexes carrying the brand of US President Donald Trump, explaining its decision to environmental damage, officials said Friday.
The hotels, homes and golf courses that carry the Trump brand were supposed to be part of the city of “MNC LEDO”, an entertainment park project for the Chinese Metal Company (MCC), which is owned by the Chinese state.
The ambitious deal between MCC and the Indonesian entertainment company MNC Land signed in 2018, according to the French Press Agency.
It was expected to support the region – which was scheduled to be part of a “integrated, global -level tourist resort” – with Chinese government loans worth 500 million dollars.
Violations
However, the Indonesian Environment Minister Hanif Faisal Norovic ordered Thursday to stop the project after a field inspection showed many violations.
“The activities of the landing of land in the project caused, according to the deposits in Lake Ledo, and made it shallow,” the senior official of the Ministry, Reda Al -Airan, told a press conference Friday.
Pictures of satellites, published by the ministry, showed that the area of LEDO in the West Jawa region was declining to more than half since the construction began, from 24.7 hectares to 11.9 hectares.
The authorities also found major differences between approved environmental plans and actual construction by the BTNC LEDO company, which branched out by the Indonesian MNC LEDO.
Irean added that the government will impose administrative sanctions.
The company’s response
For its part, BTMC LEDO said that the deposits occurred before the company took responsibility in 2013.
The company said in a statement carried by the Indonesian News Agency (Antara) that “the deposit or the lake of the lake occurred before” BTNC Land LEDO “took over the LEDO area in 2013, which can be proven through air images dating back to 2013.”
She added that she started construction in 2016, and one of her goals was to address deposit.
The project is an essential part of the development of 3,000 hectares of special economic zone.
Chinese companies were not to participate directly in building or financing real estate that bears the Trump brand.
Impact on tourism investments
According to the Associated Press, this decision represents a major blow to Trump’s international real estate projects, especially in light of the escalation of global anxiety over investments that may harm the environment.
While Chinese companies were not expected to participate directly in building real estate bearing the Trump brand, the huge Chinese financing that supports the development of the region may face additional challenges as a result of environmental controversy.
Harry Tanosuvibo, the Indonesian businessman and politician who is leading the project, had previously stated that the development of the entire region would take more than a decade, at a cost of up to 3 billion dollars, of which 300 million dollars are allocated to property associated with Trump’s commercial brand.
Reports indicate that Tanosweeppego had a close relationship with Donald Trump, as it signed a management agreement with Trump in 2015, and the Trump inauguration ceremony was attended in Washington early this year.
Environmental concern and welcome from activists
The case aroused the attention of environmental activists, as they warned that the project is located in a tropical forest area that is considered a home to rare types of animals, such as the mountainous eagle and silver pocket.
Irmadahani’s budget, head of the “Conservsi Indonesia” organization, confirmed that the project may lead to a widespread environmental disorder, and said, “The LEDO region is not just an investment land, but rather a vital part of the ecosystem in West Java, and ignoring that will have catastrophic consequences for the local population And on the nature. “
Reports indicated that the government is considering imposing new measures to protect sensitive environmental areas and prevent more environmental deterioration.
Currently, the legal future of the project appears to be threatened, as MNC Land will not be allowed to move forward without major environmental reforms.
With the escalation of local and international pressure, Indonesia may be on its way to re -evaluating its criteria for granting licenses to such huge projects.
