January 7, 2026 | 10:07 pm
TEMPO.CO, Jakarta - Indonesian sovereign wealth fund Danantara reported the development progress for Hajj Village in Saudi Arabia. The construction of Thakher area, said to be the initial foundation of the establishment, is underway.
The Thakher area includes the Novotel Thakher Makkah, which stands on 4.4 hectares of plot of land and is 2-3 kilometers away from the Great Mosque (Masjid al-Haram). There are approximately 1,461 rooms across three towers, as well as about 14 plots of land planned for further development, including commercial areas and retail centers.
"This area is designed for gradual development to around 6,000 rooms with an estimated capacity of approximately 22,000 pilgrims, or about 10 percent of the total number of Indonesian Hajj pilgrims each year," said Danantara Indonesia's Chief Investment Officer (CIO) Pandu Sjahrir, as quoted from Antara, on Wednesday, January 7, 2026.
Pandu stated that the development of Hajj Village will focus on providing accommodation and is aimed at building a more integrated ecosystem of services for pilgrims. This includes retail facilities, logistical support, and various other supporting services.
"We want to build an ecosystem, not just a hotel. We have prepared the Thakher area as a base for the development of more integrated and sustainable services for Indonesian pilgrims," said Pandu.
As part of the acquisition of the Thakher area, Danantara is actively participating in and monitoring the tender process run by the Royal Commission for Makkah City and Holy Sites (RCMC). The RCMC is the authority responsible for the development of Mecca, which determines the policy direction, area planning, and development schemes for strategic projects in Mecca.
Danantara then positioned the development of Hajj Village as part of a long-term strategy that aligns with the plans of Mecca and the framework set by RCMC. On the other hand, the RCMC offers a number of land plots with various location characteristics, designations, and distances from the Masjidil Haram.
The process includes stages of offering, technical and financial evaluations, as well as the selection of investors who are considered capable of developing the area according to Mecca's urban planning. "RCMC is an important part of the development ecosystem of Mecca. We are still involved in the process as part of a long-term exploration for the Hajj Complex, certainly with a highly selective and comprehensive study-based approach," said Pandu.
The development of Hajj Village is carried out through two paralleled pathways. The first pathway is strengthening the project foundation through the Thakher Area. The second pathway is conducted through active participation and continuous exploration in the bidding mechanism managed by RCMC for opportunities in other designated areas.
"The Thakher area serves as the initial foundation because its assets are existing and ready for development, while at the same time, we are also still following the RCMC bidding process for opportunities in areas closer to the center of hajj and umrah activities," said Pandu.
Furthermore, in the initial projection, further development is expected to begin in 2026, with additional hotel operations planned to start in 2029, following project readiness and permits. "Our focus is to ensure that every step is taken prudently, measurably, and provides long-term benefits. We are building the Hajj Complex as a cross-generational strategic project," said Pandu.
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