Indonesia’s Hajj Village in Makkah: What We Know So Far

Indonesia plans to build a Hajj Village for its pilgrims in the Thakher district of Makkah. Its sovereign investment fund, Danantara, has already bought the Novotel Thakher Makkah hotel and the surrounding land, and construction of the wider village is targeted to start in December 2026. The plan is for 13 more towers and a shopping mall, with the new towers scheduled to become operational by 2029, subject to permits. Nothing here is a finished project yet: the village is planned, not open.

Key Points

• Danantara Indonesia, the country’s sovereign investment fund, bought the Novotel Thakher Makkah hotel (1,461 rooms) and 4.4 hectares of land in Makkah’s Thakher district; the land purchase was completed on 18 October 2026.
• The plan is phased: 13 additional towers with about 6,000 more rooms, plus a shopping mall with more than 90 retail outlets.
• Construction is targeted to start in December 2026, and the additional towers are scheduled to become operational by 2029, pending permits and project readiness.
• The stated purpose is to own accommodation instead of renting it, control logistics, and push Hajj costs down for Indonesian pilgrims.
• Indonesia has the world’s largest Hajj quota — 203,320 regular places were allocated in 2026.

What Happened This Week

Danantara chief executive Rosan Roeslani briefed President Prabowo Subianto at a limited cabinet meeting in Jakarta, reported on Tuesday, 4 November 2026. Architects are to visit Indonesia to present a comprehensive plan, with the goal of a groundbreaking ceremony — or construction starting — in December 2026. The December start is the new development. The land and hotel deal itself was completed in October 2026, so this is a follow-up to that purchase, not a first announcement.

What Danantara Bought

The buyer is Danantara Indonesia, acting through PT Danantara Investment Management, with local partner Al-Khomasiah for the phased development. The site is in the Thakher district of Makkah: 4.4 hectares across 14 land plots (44,088 square metres). The existing asset is the Novotel Thakher Makkah — 1,461 rooms and suites across three 19-storey towers. The hotel was handed over on 11 August 2026, the land purchase was completed on 18 October 2026, and the ownership certificates were handed over on 19 October 2026. The purchase was made possible by Saudi Arabia’s Law of Real Estate Ownership by Non-Saudis, which took effect in January 2026.

The Plan for the Village

The development is phased. Beyond the existing hotel, the plan calls for 13 additional towers with about 6,000 additional rooms, plus a shopping mall with more than 90 retail outlets and supporting facilities. The additional towers are scheduled to become operational by 2029, pending permits and project readiness. Indonesian officials have described the purpose plainly: own the accommodation instead of renting it, control the logistics of moving pilgrims, and bring Hajj costs down for Indonesian pilgrims. Indonesia has the world’s largest Hajj quota, with 203,320 regular places allocated in 2026.

What Is Not Settled Yet

Readers should be careful with three figures that different sources report differently.

Price. Sources report different totals for the purchase: about US$500 million, US$533 million (SAR 2 billion), and US$553 million (Rp9.76 trillion). Further development is separately reported at US$700–800 million and at “exceeding SAR 2 billion”. No single agreed price exists, so this article does not present one. The purchase happened; its exact reported total varies by source.

Distance from the Haram. Reports give different distances for the Thakher district from Masjid al-Haram, so this article states the district only and gives no distance figure.

Capacity. The existing hotel holds about 4,383–4,400 pilgrims. For the finished village, one report puts the total at 6,025 rooms once the 13 towers are built, while another reports capacity rising to about 22,000 individuals — roughly 10% of Indonesia’s annual Hajj contingent. Rooms and people are different measures, so the two figures should not be mixed.

Two more cautions. One source dates the Danantara–Thakher strategic agreement to “14 December 2026”, which is impossible for an article published on 21 October 2026; other sources give December 2025, which this article uses. And an early report that the village was “likely only operational in 2027” was written in January 2026, before the purchase was completed; the current stated target is construction starting in December 2026, with towers operational by 2029.

What It Means for Pilgrims

For now, very little changes. The only completed asset is the existing Novotel Thakher Makkah hotel. The village itself is a construction plan with a December 2026 start target and a 2029 operational target for the new towers, both subject to permits. Indonesian pilgrims travelling for Hajj 2027 should not expect the village to be ready; the value of the project, if it proceeds as planned, is longer term — Indonesian-owned rooms in Makkah, steadier logistics, and, officials hope, lower Hajj costs over time.

Frequently Asked Questions

Sources: ANTARA; Seasia; Indonesia Business Post; Hotelier Middle East; ArchUp

Related reading: our full Hajj guide, the step-by-step Hajj rites, how to perform Hajj with duas and prayers, and our story on the extended halal certification deadline.