Jakarta. The Environment Ministry (KLH) has suspended all construction activities at the Lido Special Economic Zone (SEZ) in West Java, citing violations of environmental documents. The 3,000-hectare project, led by billionaire and politician Hary Tanoesoedibjo’s MNC Land, is a high-profile development linked to the Trump Organization through a licensing partnership.

Environment Minister Hanif Faisol Nurofiq announced the decision on Thursday following an inspection by the ministry’s law enforcement team, which found that improper land clearing had led to sediment runoff into Lake Lido, causing significant siltation. The ministry's team sealed off the project site and installed monitoring signs, halting all activities.

“The mismanagement of rainwater runoff has accelerated sedimentation, threatening the lake’s ecosystem and reducing its water area by half, from 24 hectares to just 12 hectares,” said Hanif. The ministry is investigating further, including laboratory analysis of water samples, to determine additional legal actions.

MNC Land, in its response, denied the allegations, asserting that sedimentation predates its acquisition of the site in 2013. “The sedimentation issues existed before we took over. Since 2016, we’ve implemented measures such as drainage systems and sediment barriers to address these concerns,” the company stated in a release on Friday.

The Lido SEZ is designed to host luxury resorts, golf courses, and entertainment complexes, with the Trump Organization managing key facilities in exchange for a share of the revenue. The project was originally scheduled for inauguration last year.

In a January 2017 interview with The Associated Press, Hary Tanoe said that developing the whole 3,000 hectares of Lido City would take more than a decade and cost up to $3 billion, of which the Trump properties would cost more than $300 million. The company has been promoting the project for years. In 2023, then Indonesian President Joko Widodo gave it special economic zone status, providing MNC Land with tax breaks and leniency on permits.

"I am confident Trump International Golf Club-Lido will soon be one of Indonesia's most renowned golf courses," Hary Tanoe said in July.

KLH maintains that MNC Land failed to align its construction practices with the approved environmental management plan. The ministry has warned that administrative sanctions, including fines, will follow if the violations are not promptly addressed.

Environmentalists welcomed the government’s move as a sign that it was serious in addressing the failure of project management to consider the environmental impact near the land designated as a Special Economic Zone.

Executive Chair of Konservasi Indonesia, Meizani Irmadhiany, said the Lido area is one of the most important watersheds of the Cimandiri river and part of the landscape of Gunung Gede Pangrango National Park, not only for the people of West Java but also for the residents of Jakarta.

“The slope contours serve as a significant water catchment area, and the area planned for the project is located on critical land,” Irmadhiany said. “It is time for the business sector to prioritize environmental principles which have direct impacts on the environment and communities, as well as business itself in the long run, before and during development.”

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