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Lido City is the umbrella project located around 60 km (37
miles) south of the capital Jakarta in the Bogor area, where the
Trump Organization will operate luxury villas, a resort and a
golf course.
The project has been designated a special economic zone (SEZ)
for tourism, which means it can benefit from corporate tax cuts,
luxury goods sales tax cuts and get some leniency on permits, PT
MNC Studios International said in a statement.
"For around 1,000 hectares in Bogor Regency, a special economic
zone permit has been obtained," MNC Group executive chairman
Tanoesoedibjo said in a text message, adding the movie studios
will be wholly controlled by his company.Tanoesoedibjo told
local media he hoped the Movieland studios will become a
creative hub and Indonesia's version of Hollywood.
Indonesia's National Council for Special Economic Zones, which
recommended President Joko Widodo approve the status, projected
Lido City could attract $2.4 billion in investment and 3.17
million tourist per year through 2038.
Businesses investing 1 trillion rupiah ($71.92 million) or more
in SEZs are eligible for tax holidays of up to 20 years that
could be extended for two more years with a 50% tax cut.
It was not clear whether the Trump Organization would benefit
from tax breaks since MNC has not disclosed any profit-sharing
schemes over the management of the properties. Trump
Organization is also partnering with MNC on another project in
Bali.
In a 2019 visit to Indonesia, Donald Trump Jr dismissed any risk
of conflict of interest in the Southeast Asian country and said
the projects were among the last the Trump Organization signed
up before his father became president. (https://reut.rs/2N7qClh)
The former U.S. President kept ownership of his global business
empire, but handed off control to his two oldest sons through a
trust while in office.
Meanwhile, MNC Group is undergoing debt restructuring after
Singapore's High Court on Jan. 29 ratified a bond restructuring,
which will involve holders exchanging $231 million of notes for
shares or new bonds, Refinitiv publication IFR said.
(Additional reporting by Fransiska Nangoy and Tabita Diela;
Editing by Ed Davies)
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