Danantara Targets the Mecca Hajj Complex Phase I to Accommodate 22,000 Pilgrims

JAKARTA - The Anagata Nusantara Power Investment Management Agency (Danantara Indonesia) reported the progress of the development of the Hajj Complex (Hajj Complex) in Mecca, Saudi Arabia, with the Thakher Area being the initial foundation that has been running.

Thakher area includes Novotel Thakher Makkah and has been operating with approximately 4.4 hectares of development area land located approximately 2-3 kilometers from the Grand Mosque, with approximately 1,461 rooms in three towers, as well as approximately 14 plots of land in the area planned for further development, including commercial areas and retail centers.

"Gradually, this area is designed to expand to around 6,000 rooms with an estimated capacity of approximately 22,000 pilgrims, or about 10 percent of the total Indonesian Hajj pilgrims each year," said Chief Investment Officer (CIO) Danantara Indonesia Pandu Sjahrir as quoted by ANTARA, Wednesday, January 7.

Pandu explained that the development of the Thakher Area would be focused on providing accommodation and directed to building a more integrated pilgrim service ecosystem, including retail facilities, logistics support, and various other supporting services.

"We want to build an ecosystem, not just hotels. Our Thakher area is ready as a basis for developing more integrated and sustainable Indonesian pilgrim services," said Pandu.

Along with the acquisition of the Thakher area, he continued, Danantara is following and observing the auction process carried out by the Royal Commission for Makkah City and Holy Sites (RCMC).

RCMC is the development authority of the City of Mecca, whose task is to set the direction of policy, area management, and development schemes for strategic projects in Mecca.

Within this framework, Danantara places the development of the Hajj Complex as part of a long-term strategy that is in line with the master plan of the City of Mecca and the framework established by the RCMC.

On the other hand, RCMC offers a number of plot areas with various characteristics of location, allocation, and distance to the Grand Mosque.

The process includes the stages of bidding, technical and financial evaluation, and the selection of investors who are considered capable of developing the area in accordance with the Makkah City master plan.

"RCMC is an important part of the Makkah development ecosystem. We are still involved in the process as part of a long-term exploration for the Hajj Complex, of course with a very selective and study-based approach," said Pandu.

The development of the Hajj Complex is carried out through two strategic paths in parallel, including the first path, namely strengthening the foundation of the project through the Thakher Area, and the second path is carried out through active participation and continuous exploration in the auction mechanism managed by RCMC for other opportunities in the area around the Grand Mosque.

"The Thakher area is the initial foundation because the assets are existing and ready to be developed, while at the same time we are still following the RCMC auction process for other opportunities that are closer to the center of Hajj and Umrah activities," said Pandu.

In his report, Danantara conveyed that the strengthening of the Thakher Area was the initial foundation for the development of the Hajj Complex and at the same time opened up room for further development within the RCMC framework for other strategic areas in Mecca in the future.

This approach is carried out selectively and based on thorough studies, in line with Danantara's long-term strategy to build an integrated and sustainable Hajj complex.

In the Thakher area, Danantara is preparing a gradual investment that includes strengthening initial assets as well as capital expenditure (capex) for the development of the area.

In the initial projection, the continued development is targeted to enter the groundbreaking phase in 2026, with additional hotel operations planned to start in 2029, following project readiness and licensing.

"Our focus is to ensure that every step is taken prudently, measured, and provides long-term benefits. Our Hajj complex is built as a cross-generational strategic project," said Pandu.