Trump`s Businesses in Indonesia Potential to Conflict of Interest

TEMPO.CO, Jakarta - The United States president-elect Donald J. Trump’s business dealings may be marred with conflict of interest in Indonesia since Mr. Trump has already had close ties with the country’s top politicians. Mr. Trump’s plans to cooperate with MNC Group owned by tycoon Hary Tanoesoedibjo and the US interest in US mining company Freeport-McMoran Inc in Indonesia may cause some problems.

“You could have two world leaders that are business partners. It makes it almost impossible to conduct diplomacy in an evenhanded manner,” said Richard W. Painter, who served as a White House ethics lawyer during the George W. Bush administration, as quoted by the New York Times.

Mr. Painter’s does have a point. Mr. Trump’s Trump Hotel Collection has agreed to cooperate with MNC Group through its subsidiary PT Media Nusantara Citra Land Tbk (KPIG) to build world-class resorts in Bali and Lido, the city of Bogor, West Java.

Project development in Lido on 3,000 hectares of land will include an integrated area comprising of a golf resort, a hotel, and country club, as well as Disney Land-like amusement park. Meanwhile, plans have been made to develop a six-star resort in Bali.

Mr. Trump had earlier promised to end his business deals abroad to minimize conflict of interest but he had yet to make a clear decision on his businesses in Indonesia. The New York Times reported that Mr. Trump will go ahead with his two projects in the country, even though the constructions are not yet started.

On the other hand, Mr. Hary Tanoe is the leader of Perindo Party. Potential conflict of interest could come into play if the party manages to come into power. Mr. Trump’s relationship with Mr. Hary has opened the access into Indonesia’s top politicians, including the House of Representatives (DPR) speaker Setya Novanto.

Mr. Trump and Mr. Setya met in the United States on the sidelines of his campaign in September 2015. Mr. Setya and the House deputy speaker Fadli Zon, as well as a number of lawmakers, were present among Donald Trump’s supporters in a press conference and election campaign. Mr. Trump took Mr. Setya into the center of attention and called him ‘a great man.”

The incident sparked controversy in Indonesia, prompting the House’s Ethics Council to give a stern warning to Mr. Setya and Mr. Fadli. On December 2015, Setya was entangled on “papa minta saham” (Freeport shakedown) case, in which Mr. Setya was recorded asking for a payment of US$4 billion to Freeport.

Mr. Setya resigned from House speaker post in December 2015. The Golkar Party chairman, however, was reinstated as House speaker on November 30 ,2016.

Potential conflict of interest also involves Carl C. Icahn, US billionaire who has been named Mr. Trump’s special advisor. Mr. Icahn is one of Freeport’s biggest shareholders. The Papua-based gold and copper company is pushing for a contract extension from the Indonesian government.

Mr. Trump had promised on his Twitter account to stop making new business deals. He has also shut down his family foundation and canceled some project proposals, such as Trump Tower in Buenos Aires, Argentina, and Trump Riverwalk in India.

MNC Group owner Mr. Hary Tanoe said that there will be no conflict of interest in the agreement with Mr. Trump. “His family and children are free to run businesses so long as they have no connection with the presidency,” he said.

The Trump Organization spokesperson Amanda Miller said that two projects in Indonesia will go ahead.

VINDRY FLORENTIN | ABDUL MALIK