JakartaGlobe-Dec 17
Indonesian sovereign fund Danantara is investing approximately $500 million in its recent acquisition of a hotel and land plots in Mecca, according to a senior official, as Jakarta moves forward with the Hajj Village plan.
Indonesia — the world’s largest Muslim-majority country — wants to build a “village” in Mecca dedicated to its pilgrims. As part of this grand plan, Danantara’s investment arm recently inked a deal with real estate firm Thakher Development Company to acquire the already operational Novotel Makkah Thakher City, about 2.5 kilometers away from Islam’s most significant mosque, Masjid al-Haram. Under the transaction, Indonesia will own three towers — each 28-storey high — as well as 14 land plots spanning 4.4 hectares. “This deal alone totals slightly more than $500 million. We are planning to set up 13 towers and one shopping center. This is still subject to change. It will also require between $700 million and $800 million [in investments],” Danantara Chief Executive Officer Rosan Roeslani said in Jakarta on Wednesday. According to Rosan, construction on the 4.4-hectare land will likely begin in Q4 2026. However, Rosan went on to say that what Danantara has actually signed is a “conditional sales and purchase agreement”, citing that Saudi Arabia’s law regulating real estate ownership by foreigners will take effect in January. Read more at: https://jakartaglobe.id/business/hajj-village-indonesia-invests-500-million-in-novotel-makkah-deal#goog_rewarded
