INDONESIA MAKKAH PROPERTY DEAL: WHAT DANANTARA ACTUALLY BOUGHT
Indonesia Makkah property deal explained: what Danantara bought, how much it cost, and why 1,461 hotel rooms matter for Hajj pilgrims.
At a glance
- Price: about SAR 2 billion (roughly $533 million, or Rp8.6 trillion)
- Hotel: 1,461 rooms at Novotel Thakher Makkah
- Land: 14 plots, 44,088 square metres
- Future spend: a programme reported at more than SAR 6 billion
Most Indonesians who go to Makkah rent a hotel room for a few weeks and leave. Now Indonesia owns one.
The Indonesia Makkah property deal is a purchase by Danantara, Indonesia’s sovereign wealth fund. It paid about SAR 2 billion ($533 million) for a hotel and 14 development plots in Makkah. Danantara took over the 1,461-room Novotel Thakher Makkah on 11 August 2026 and completed the land purchase on 18 October
What is the Indonesia Makkah property deal?
It started as a signed agreement. On 14 December 2025, Danantara announced a deal with Thakher Development Company for hotel and real estate assets in Thakher City. The seller, Thakher Development Company, is the Saudi developer behind the area.
Two steps made it official. First came the keys to the hotel in August. Then came the land, which was completed on October 18.
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Why is Indonesia buying property in Makkah?
The answer is pilgrims. Indonesia sends more Hajj and Umrah travellers than almost any country, and housing them is a yearly scramble.
Owning rooms changes that. It gives Indonesia more long-term control over accommodation and reduces reliance on seasonal hotel rentals. Think of it as the difference between renting a flat and owning one.
How big could the project get?
The hotel is only the start. The 14 plots are meant for new building. Posts from Indonesian media say Danantara plans about 6,000 more hotel rooms and a shopping centre with more than 90 stores.
Another report says Danantara plans 13 towers on the plots, plus one commercial building. The plans are still moving, and the spending depends on feasibility studies, approvals and phased construction.
Is Indonesia really the first foreign country to own property in Makkah?
Here is the part worth sharing. The headline says “first foreign country,” but the buyer is a fund, not the government itself. And the timing matters.
One Saudi report says the deal came as updated rules on property ownership by non-Saudis in Makkah took effect. Another calls it an early major test of Saudi Arabia’s revised foreign property ownership framework. So the big story may be the law change, not just the price tag.
Where exactly is the hotel?
Reports disagree on the distance. Danantara’s own statement says about 2.5 kilometres from the Masjid al-Haram. Saudi newspaper Okaz says 1.2 kilometres north of the Grand Mosque. Indonesian posts use the 1.2 km figure.
The quote above is a placeholder. The sources I found only paraphrase Rosan Roeslani, so please add his exact words before publishing. He said the deal marks the start of Indonesia’s long-term hospitality investment in Makkah and Saudi Arabia.
Who runs the hotel?
Nothing changes for guests yet. Novotel Makkah Thakher City is an Accor Group affiliate hotel, and the Indonesian posts say Accor keeps running it day to day.
