January 8, 2026 | 02:27 pm
TEMPO.CO, Jakarta - Indonesia’s Investment Management Agency Danantara is preparing two strategic development schemes for Indonesian Hajj Village (Kampung Haji Indonesia) in Mecca, Saudi Arabia, as part of a long-term plan to build an integrated and sustainable Hajj complex.
Danantara Indonesia Chief Investment Officer Pandu Sjahrir said the two schemes are being pursued in parallel.
The first focuses on strengthening the project’s foundation in the Thakher area, while the second involves participation in auction processes for strategic sites managed by the Royal Commission for Makkah City and Holy Sites (RCMC).
“We are developing the Hajj Complex through a phased approach,” Pandu said in a written statement on Thursday, January 8, 2026.
“The Thakher area serves as the initial foundation because its assets are already available and ready for development. At the same time, we are participating in RCMC auctions for opportunities closer to the center of Hajj and Umrah activities.”
Pandu said the phased strategy was chosen to ensure the project progresses in a measured and sustainable manner.
The Thakher area currently includes the Novotel Thakher Makkah, which is already operational and offers about 1,461 rooms across three towers.
The site also comprises around 14 development plots covering a total area of 4.4 hectares, located within a strategic corridor approximately two to three kilometers from the Grand Mosque (Masjidil Haram).
Danantara plans to gradually expand the area to include around 6,000 rooms, which could accommodate roughly 22,000 pilgrims—about 10 percent of Indonesia’s annual Hajj quota.
Beyond accommodation, the project is designed as an integrated ecosystem for Indonesian pilgrims. Pandu said the development will include retail facilities, logistics support, and other essential services.
“We want to build an ecosystem, not just hotels,” Pandu said. “The Thakher area is being prepared as a base for integrated and sustainable services for Indonesian pilgrims.”
Alongside the Thakher development, Danantara is also closely monitoring RCMC-led auctions for other strategic locations near Masjidil Haram. As Mecca’s development authority, RCMC sets policy direction and master plans for areas surrounding the holy site.
Pandu said the commission offers multiple plots with varying characteristics and designations, with investor selection conducted through technical and financial evaluations to ensure alignment with Mecca’s broader development plans.
“We are engaging in this process as a long-term exploration for the Hajj Complex, using a highly selective and well-researched approach,” he said.
Investment in the Thakher area will be carried out in stages, covering both asset consolidation and capital expenditure for further development. Danantara is targeting a groundbreaking ceremony in 2026, with additional hotels expected to begin operations from 2029.
“Our priority is to ensure every step is taken prudently and carefully,” Pandu said. “This Hajj Complex is a strategic, cross-generational project.”
Meanwhile, Minister of Hajj and Umrah Mochamad Irfan Yusuf said the Indonesian Hajj Village will not be operational for the 2026 Hajj season. He estimated that the first hotel towers could be completed within one to two years.
“We hope that by 2028 at the latest, some towers can be used,” he said on Thursday while visiting the Hajj Dormitory in Pondok Gede, East Jakarta.
Previously, State Secretary Minister Prasetyo Hadi said the Indonesian government had secured ownership of hotel and land assets in Saudi Arabia through an auction process, which will serve as the future site of the Indonesian Hajj Village.
He confirmed the development after Danantara CEO Rosan Roeslani reported the auction result during a cabinet retreat held at the Garuda Yaksa Pavilion in Hambalang, Bogor, West Java, on Tuesday, January 6, 2025.
“Mr. Rosan reported that we have won the bidding and now have our own hotel in Mecca, thanks to the President’s extraordinary diplomacy,” Prasetyo said at a press conference following the meeting.
Read: Prabowo Pushes Groundbreaking of 18 Downstream Projects by March 2026
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