JAKARTA (BLOOMBERG) - PT MNC Land, an Indonesian builder, began a sale of luxury condos and mansions in two projects being developed in partnership with The Trump Organization, marking the US developer's foray into South-east Asia's largest economy.
Donald Trump Jr, who attended a pre-launch event in Jakarta on Tuesday (Aug 13) for the condos and villas at its West Java and Bali projects, said Indonesia was "an under-served market" and the projects are "a dream becoming a reality" for The Trump Organization. The projects will be completed in stages within three years, according to MNC Land.
Indonesian business tycoon Hary Tanoesoedibjo's MNC Land is investing US$1.7 billion (S$2.36 billion) to develop the two sites, including a Trump-branded six-star luxury hotel in Bali and a resort and condos in Lido in West Java. The partnerships signed in 2015 entitles The Trump Organization to receive royalty from the Indonesian developer for the use of the Trump brand. The organisation will also get a fee to manage the hotels and golf courses and commission from sales of the Trump-branded villas and condos.
The West Java project, in an area known as Lido Lakes and about two hours drive from Jakarta, will eventually be spread over 3,000 hectares sandwiched between two volcanoes. The initial phase includes a Trump-branded resort, as well as villas and condos, and a golf course. Tanoesoedibjo's plans for project include a concert venue that can accommodate 100,000 people, a production facility for film and television studios and a theme park that he has said would be twice as big as Universal Studios in Singapore.
The Trump International Hotel and Tower Bali will be the largest resort on the popular tourist island and will be managed by the US developer, according to MNC Land. Tanoesoedibjo is the founder of media and real estate conglomerate MNC Group and also runs his own political party. The businessman was on the guest list for President Trump's inauguration, and has often touted his friendship with Mr Trump's children.
The Trump Organization will not pursue new deals globally to avoid "impropriety", Trump Jr told reporters. The developer will focus on completing projects signed before his father won the presidential election and doesn't see any impact of the ongoing trade war on the group's business, he said.
"After politics we'll look to come back into the market," Trump Jr said, adding new ventures could be in Indonesia or India where he had spent years building relationships with developers. "We voluntarily chose to put that aside so as not to create the impression of any kind of impropriety."
His father broke with the practice of previous presidents who either divested assets that could cause conflicts of interest or put those assets in blind trusts. Instead, Mr Trump transferred his assets to a revocable trust administered by his elder son, Trump Jr, and Allen Weisselberg, the chief financial officer of The Trump Organization.