Key insights and market outlook
Indonesia has successfully won the bid for developing a Hajj Complex in Makkah, Saudi Arabia, through state-owned investment manager Danantara. The project, which includes the existing Thakher area, is expected to accommodate 22,000 Indonesian pilgrims and features a comprehensive ecosystem beyond just accommodation. Construction is targeted to begin in Q4 2026 with a phased development approach 1
Indonesia has successfully won the bid to develop a Hajj Complex in Makkah, Saudi Arabia, through state-owned investment manager Danantara. The project involves two parallel strategic pathways: strengthening the foundation through the Thakher area and participating in land auctions managed by the Royal Commission for Makkah City and Holy Sites (RCMC) for other potential areas around Masjidil Haram 1
The Thakher area currently includes the operational Novotel Thakher Makkah with approximately 1,461 rooms across three towers. The development plans include additional commercial areas, retail spaces, and supporting facilities, aiming to accommodate around 22,000 pilgrims, which is about 10% of Indonesia's total hajj pilgrims annually. The phased development is expected to be operational by 2029, following project readiness and necessary permits 1
Chief Investment Officer Pandu Sjahrir emphasized that the development goes beyond mere accommodation, focusing on creating an integrated ecosystem for Indonesian pilgrims. This includes retail facilities, logistical support, and other ancillary services. Danantara is also actively participating in RCMC's auction process for additional plots that are closer to the central hajj activities 1
Hajj Complex Development Approval
Strategic Land Acquisition
Large-scale Infrastructure Investment