JAKARTA: State asset fund Danantara, through its investment holding company PT Danantara Investment Management, has completed the acquisition of 4.4 ha of land in Mecca, Saudi Arabia, expanding its investment in the holy city’s hospitality sector for developing an integrated complex to serve Muslims travelling for haj and umrah (minor haj), including Indonesian pilgrims.
The latest deal follows the Aug 11 handover of the Novotel Makkah Thakher City hotel, which has 1,461 rooms and suites.
The newly acquired land is intended to provide space for future expansion under a strategic agreement announced by Danantara and Thakher Development Co on Dec 14, 2025.
Danantara chief executive officer Rosan Roeslani said the acquisition marked a step toward establishing a long-term hospitality investment platform in Saudi Arabia.
“Our focus is to manage these assets with strict investment discipline while developing an integrated ecosystem that improves the quality of accommodation and services for pilgrims from Indonesia and other countries,” Rosan said on Monday.
He added the investment would strengthen economic ties between Indonesia and Saudi Arabia as Danantara explored opportunities in other cities such as Medina and in other strategic sectors beyond property.
The investment is part of the fund’s planned Bait Jemaah complex, an integrated development that aims to provide accommodation and supporting services, including retail and other facilities, for pilgrims while improving their experience.
Danantara chief investment officer Pandu Sjahrir said combining an operating hotel with land for future expansion would allow the fund to grow alongside Saudi Arabia’s pilgrimage ecosystem.
He added the complex would also introduce Indonesian culture, hospitality and cuisine to international visitors in Mecca.
“We will pursue the next stages in a measured manner, guided by commercial feasibility, regulatory requirements and prudent governance, to create sustainable long-term value,” Pandu said.
The project is to proceed in stages with local partner Al-Khomasiah Group, which helped facilitate the transaction and Danantara’s entry into the Saudi real estate market.
Khomasiah chief executive Ammar Baroum said Danantara’s commitment reflected growing international investor confidence in Saudi Arabia’s long-term potential, particularly in the hospitality and property sectors in Mecca and Medina.
The investment also aligned with Saudi Arabia’s Vision 2030, he said.
Faisal Adnan Shaker, chief executive of Thakher Development, described the transaction as a milestone, saying Indonesia was the first foreign country to own property in the Thakher Makkah development area.
He added the transaction was completed in 10 months, from signing to ownership transfer, and reflected global confidence in Saudi Arabia’s investment market.
Thakher Development would now focus on aligning Danantara’s investment plans with its own development strategy, including efforts to enable more Indonesian pilgrims to stay near the Grand Mosque.
Indonesia, the world’s largest Muslim-majority country, sends more than two million umrah pilgrims and over 200,000 haj pilgrims to Mecca each year, making the availability and affordability of local accommodation a persistent challenge.
The average haj cost for 2027 is set at 98.47 million rupiah (US$5,500) per pilgrim, according to the Government Communication Agency. — The Jakarta Post/ANN
