State Secretary Prasetyo Hadi confirmed the win after Danantara CEO Rosan Roeslani reported it during a Red and White Cabinet retreat and annual briefing in Hambalang, West Java.
Roeslani told ministers Indonesia now owns a hotel in Mecca following what Prasetyo described as extraordinary diplomacy by President Prabowo Subianto, which opened access to foreign asset ownership.
Prasetyo said the deal marked the first time Saudi Arabia revised its rules to allow a foreign government to own assets, calling it a gift to Indonesia and its Muslim population.
Danantara, which oversees strategic state investments, purchased the Novotel Thakher Makkah hotel along with about five hectares of land to establish the Indonesian Hajj Village, Rosan previously said.
The hotel has 1,461 rooms across three towers and can accommodate 4,383 Indonesian pilgrims, providing centralized lodging during the annual Hajj season.
The government plans to add 13 towers, increasing total capacity to 6,025 rooms, alongside integrated facilities designed to improve comfort, efficiency and services for Indonesian pilgrims.
Rosan said the complex is located very close to the Grand Mosque, far more strategic than current Indonesian pilgrim housing, which is typically 4.5 to 6 kilometres away.
The acquisition cost about USD500 million, while further development including additional towers and a shopping centre is expected to require USD700 million to USD800 million in investment.
Prasetyo said the initiative reflects the government’s focus on improving services for Indonesian pilgrims and strengthening protection and comfort for citizens performing Hajj and Umrah in Saudi Arabia.
He said the project would support long term planning for Indonesia’s growing pilgrim numbers, reduce logistical costs, and enhance coordination with Saudi authorities during peak religious seasons.
The Indonesian government aims to use the complex as a permanent operational hub, setting a new benchmark for overseas asset ownership and bilateral cooperation in religious services between the two countries involved.
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Translator: Mentari DG, Rahmad Nasution
Editor: M Razi Rahman
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