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The Trump Organization would surely have in mind the huge tax breaks that Indonesia has been dangling to lure private players to invest in the country’s projects.
Indonesian property firm PT MNC Land launched on Friday a 1,040 hectare (2,570 acre) tourism complex on Java island, where former U.S. President Donald Trump’s company will operate a hotel and a golf course.
Indonesian President Joko Widodo also inaugurated a special economic zone within MNC’s tourism project, which is called Lido City and located around 60 km (37 miles) south of the capital Jakarta in the Bogor area.
MNC Land said the special economic zone status means investors or developers can benefit from corporate and luxury goods sales tax cuts and some leniency on permits, adding benefits included an 80-year building rights title and foreign ownership.
It was not clear whether the Trump Organization would also benefit from tax breaks, which include a tax holiday for corporate tax for 10 to 20 years based on the investment value.
During his presidency, Trump had kept ownership of his global business empire, but handed off control to his two oldest sons through a trust while in office, an arrangement, watchdogs said at the time did not go far enough to prevent conflicts of interest in the White House.
Trump was this week indicted by a Manhattan grand jury after a probe into hush money paid to porn star Stormy Daniels, becoming the first former U.S. president to face criminal charges even as he makes another run for the White House. He has denied any wrong doing.
MNC Land said it fully owned the project in Lido, which includes a movie studio called Movieland, while the Trump Organization will operate an 83-hectare golf course opening this year and a five-star hotel. Indonesian tycoon and chairman of MNC Group, Hary Tanoesoedibjo, has said Movieland will become a creative hub and Indonesia’s version of Hollywood.
The Trump Organization is also partnering with MNC on another project in Bali.
(Reporting by Stanley Widianto; Editing by Ed Davies)
This article was from Reuters and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].
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