Trump's Indonesian Partner Gets Special Govt's Treatment for $2.4b West Java Resorts Project

Wishnu Bagus Prasetyo
February 13, 2021 | 4:20 pm
SHARE
Hary Tanoesoedibjo, Indonesian media tycoon and Donald Trump's partner in a West Java resorts project. (SP Photo/Ruth Semiono)
Hary Tanoesoedibjo, Indonesian media tycoon and Donald Trump's partner in a West Java resorts project. (SP Photo/Ruth Semiono)

Jakarta. The government has decided to assign MNC Lido City, a resort megaproject owned by MNC Land, a Jakarta-listed property company controlled by media tycoon Hary Tanoesoedibjo, special economic zones, or SEZ for tourism, a status that came with various tax incentives and special tax facilities for any business involved in the project. 

The estimated $2.4 billion MNC Lido City project comprises 3,000 hectares of land in Bogor district in West Java, which would be developed into an integrated complex of residential, commercial, theme parks, and resorts. 

MNC Land and the Trump Organization, controlled by the United States' 45th president, Donald Trump, signed an agreement in 2015 for the latter to operate two resorts, including one in Lido and another in Tanah Lot, Bali. 

As the project was now an SEZ, the companies would likely enjoy waivers for income tax (PPh), value-added tax (PPN), sales tax on luxury goods (PPnBM), import duties, excise, and various other licensing facilities. 

Advertisement

According to a 2020 Finance Ministry Regulation about Tax, Excise and Duties Facilities for SEZ, a company investing more than Rp 1 trillion ($71.5 million) in the special zone is legible for not paying income tax for 20 years, among other tax breaks. 

"Lido SEZ is expected to encourage tourism in Indonesia. And the goal must be clear, tourists to West Java must be of international level," Coordinating Minister for the Economic Affairs Airlangga Hartarto, who is also the chairman of SEZ National Council, said in a statement on Friday. 

"The project must also be a premium one, so the foreign exchange [revenue] is also high," Airlangga said. 

Coordinating Ministry for Economic Affairs estimated that Lido SEZ would attract up to $ 2.4 billion to the projects. The project would also generate a net inflow of $4.1 billion in foreign exchange over the next 20 years, comprising the money spent by the foreign tourists and savings from domestic tourists who opt not to go abroad and, instead, spend their vacation at the resort. 

Located about 60 kilometers from Jakarta, MNC Lido City can be reached in one hour using a toll road from the capital. 

MNC Land said in a statement that MNC Lido City construction kept progressing amid the Covid-19 pandemic. The company was now working to build a theme park called MNC World Lido and the Luxurious International Resort, Golf Club & Residences Lido, designed by Oppenheim Architecture, HBA, and EDSA.

Former world number one golfer Ernie Els designed the International Golf Club Lido, which would feature an 18-hole PGA standard championship golf course, with a sweeping panorama of Mount Salak and Mount Gede-Pangrango.

Coordinating Ministry for Economic Affairs said it hoped MNC Lido City would help Indonesia increase the number of tourist visits to 63.4 million per year people by 2038 or an average of 3.17 million tourists per year.

Indonesia saw 16.1 million foreign tourists visited the country in 2020 before Covid-19 cut the numbers by 75 percent to just 4.02 million last year. The country lagged behind its neighbors Thailand and Malaysia, which attracts about 40 million and 26 million foreigners, respectively, per year.  

Tags: Keywords:
SHARE

Related Articles


Business 11 hours ago

'Investment, Not Tariffs,' Says Ishiba after Telephone Talks with Trump 

Ishiba said he reminded Trump that Japan's position was for the US administration to scrap all recent tariffs on imports from Japan.
News May 22, 2025 | 2:43 am

US Defense Department Accepts Boeing 747 from Qatar for Trump's Use

Critics have said Trump's acceptance of an aircraft is a violation of the Constitution’s prohibition on foreign gifts.
News May 15, 2025 | 1:41 am

Trump Handshake Caps Syrian Leader’s Journey from Anti-US Insurgent to Nascent Mideast Partner

As the leader of a US-designated terror group fighting in Syria's civil war, Ahmad al-Sharaa had a $10 million bounty on his head.
Business May 14, 2025 | 5:46 pm

‘Anything Can Happen’: Indonesia Should Focus on Domestic Market as US-China Tariff War Cools

As US-China trade war eases, Indonesia should focus on boosting its household consumption, Apindo's chairwoman Shinta Kamdani says.
Business May 11, 2025 | 9:35 pm

No Breakthroughs Yet in US-China Tariff Talks, But Trump Touts 'Great Progress'

In its editorial, Xinhua said, “Talks should never be a pretext for continued coercion or extortion."
News May 9, 2025 | 9:36 pm

Trump Considers Lowering China Tariffs to 80% Ahead of Trade Talks

Trump proposes cutting China tariffs to 80% ahead of key Geneva talks, signaling possible thaw in escalating US-China trade war.
News May 5, 2025 | 10:19 am

Trump Says He Will Reopen Alcatraz Prison

In the 29 years it was open, 36 men attempted 14 escapes, according to the FBI. Nearly all were caught or didn’t survive the attempt.
News May 4, 2025 | 11:43 pm

Pritzker and Ocasio-Cortez: A Billionaire and A Former Bartender Emerge as Trump Resistance Leaders

Both have urged mass resistance, accused their party of not fighting more, and stood out enough to draw sharp retorts from Trump loyalists.
News May 4, 2025 | 7:59 am

Trump Draws Criticism with AI Image of Himself as The Pope Ahead of The Papal Conclave

The image was shared Friday night on Trump's Truth Social site and later reposted by the White House on its official X account.
News May 2, 2025 | 10:42 am

US Army Plans for Potential Parade on Trump's Birthday Call for 6,600 Soldiers

The Army anniversary just happens to coincide with Trump’s 79th birthday on June 14.

The Latest


News 3 hours ago

At Least 60 Killed in Israeli Strikes as Gaza Aid Remains Scarce

At least 60 killed in Gaza strikes as Israel allows limited aid amid global pressure and UN warnings of looming famine.
Business 4 hours ago

Benzoin Resin Touted as Next Big Commodity in Indonesia’s Downstream Strategy

Luhut Pandjaitan says benzoin resin, or kemenyan, holds untapped potential for Indonesia’s downstream strategy and rural economic growth.
Business 4 hours ago

Trump Threatens 50% Tariffs on EU, 25% on Apple iPhones Made Abroad

Trump threatens 50% tariffs on EU goods and 25% on Apple products unless iPhones are made in the US, escalating his trade war.
News 6 hours ago

Minister Shuts Down Tangerang Steel Plant Over Toxic Smoke Emissions

The facility, operated by Power Steel Mandiri in the Cikupa Industrial Complex, was found to be emitting hazardous air pollutants.
Business 7 hours ago

Shell’s Exit from Indonesia Fuel Retail Not a Sign of Energy Sector Decline, Says Minister

Energy Minister Bahlil Lahadalia says Shell’s sale of Indonesian fuel stations is a normal business move, not a worsening energy sector.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED