Indonesia's sovereign wealth fund Danantara will break ground on a major Hajj Complex project in Makkah in 2026, following a $500 million acquisition of the Novotel Makkah Thakher hotel and 14 land plots spanning 4.4 hectares located approximately 2.5 kilometers from Masjid al-Haram.
Danantara Chief Investment Officer Pandu Sjahrir emphasized that this cross-generational strategic project will be developed with prudent, measured steps to deliver long-term benefits for Indonesian pilgrims, with construction in the Thakher area targeted to commence in the fourth quarter of 2026.
The development will dramatically increase accommodation capacity from around 4,383 pilgrims to approximately 22,000 individuals—serving roughly 10% of Indonesia's annual Hajj contingent—with additional hotel towers scheduled to become operational by 2029, pending permits and project readiness.
According to Danantara CEO Rosan Roeslani, the further development of the Thakher land will require up to $800 million, while Indonesia is also competing as one of the top two contenders among 90 bidders for another strategic land parcel in the Western Hindawiyyah area near Masjid al-Haram, which carries a fixed price of $750 million.
The total known investment for this comprehensive Hajj Village initiative amounts to approximately $2 billion, positioning Indonesia to significantly reduce pilgrimage costs and improve the experience for its citizens performing one of Islam's five pillars.
