Indonesian firm cancels Chinese loan for its Trump project

Elias Hubbard
August 14, 2019

Donald Trump Jr on Tuesday presented a project for two luxury resorts worth $1.7 billion on the Indonesian islands of Java and Bali.

The Trump International Hotel and Tower Bali will be the largest resort on the popular tourist island and will be managed by the USA developer, according to MNC Land. The projects will be completed in stages within three years, according to MNC Land.

Donald Trump Jr, the eldest son of the US president, said he was upbeat about two planned Trump-branded projects in Indonesia and dismissed any risk of conflict of interest over involvement in the luxury resorts in Southeast Asia's biggest economy.

MNC Lido City, with an area of 3,000 hectares, will have a theme park, a concert venue that will accommodate up to 100,000 people, a movie studio and a golf course which is already ready.

In a move that alarmed Trump critics, MNC Land, the Indonesian company that is developing the theme park owned by Indonesian billionaire Hary Tanoesoedibjo, said in May that it had hired a subsidiary of Chinese state-owned Metallurgical Corp. of China to build the park in its West Java Lido City development just outside Jakarta.

"Property is about location, location, location", he said, describing the planned resorts as "dream projects".

The MNC Land is set to build 144 ultra-luxurious residences and a golf club, which will be managed by The Trump Organization, near the Tanah Lot temple, some 25 km from Ngurah Rai International Airport.

Tanoesoedibjo ran for Indonesia's vice president in the 2014 elections and subsequently founded his own political party, which contested Indonesia's general elections in 2019. The businessman was on the guest list for Trump's inauguration, and has often touted his friendship with Trump's children.

The developer will only complete projects signed prior to Donald Trump's term in office.

"After politics we'll look to come back into the market", Trump Jr. was quoted as saying.

Trump broke with the practice of previous presidents who either divested assets that could cause conflicts of interest or put those assets in blind trusts.

The Trump Organization has a contractual obligation to finish off deals it had previously signed, he said. He now holds the position as an Executive Vice President at The Trump Organization, responsible to expand the company's real estate, retail, commercial, hotel, and golf interests and future Trump projects. "My father is not at all involved, and he wouldn't make decisions that affect the country based on a real estate deal", he said.

Other reports by Click Lancashire

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