JAKARTA – Indonesia’s sovereign wealth management entity, Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), is moving forward with plans to construct a comprehensive “Kampung Haji” (Pilgrim Village) in Mecca, with land acquisition covering an area twice the size of Jakarta’s Sudirman Central Business District.

Danantara’s Chief Investment Officer Pandu Sjahrir revealed that the Pilgrim Village will be developed on land exceeding 80 hectares—equivalent to 2.5 times the size of SCBD, one of Jakarta’s premier business districts.

“Because 80 hectares is equal to 2.5 times SCBD. If God wills, we will get it. But please pray for us,” he stated at the Westin Hotel Jakarta on Wednesday (November 19).

Presidential Initiative Drives Project

Pandu explained that the Kampung Haji development represents a priority initiative of Indonesian President Prabowo Subianto. Danantara is currently navigating the bidding process for the land acquisition.

“Now we are also planning to purchase several surrounding parcels where permits have already been completed,” he added.

The Danantara team has maintained a presence in Saudi Arabia, with representatives spending 2.5 months on-site. The formal bid was submitted just last week, and the team continues to await results.

“Our team has been there, and we still have people there because we just submitted our bidding last week. Our team lived there for 2.5 months. We haven’t secured the land yet, so we’re waiting. But this is one of our aspirations to invest in Mecca and also to bring Indonesian businesses to become more regional or more global,” Pandu elaborated.

Showcasing Indonesian Excellence

According to Pandu, Kampung Haji will serve as a platform to demonstrate Indonesia’s emergence as a world-class nation. “We can showcase Indonesian quality that is world-class,” he emphasized.

The development will extend far beyond basic accommodation for Indonesian pilgrims performing religious obligations. The project envisions creating a comprehensive business ecosystem encompassing culinary ventures, fashion retail, tourism services, and various sharia-compliant businesses.

“Here we will start with food and beverages, fashion modes, tourism, pharmaceuticals, media, and possibly sharia business,” he outlined.

Ambitious Pilgrim Quota Goals

Through the collaboration between Indonesia and Saudi Arabia facilitated by Kampung Haji, officials hope to double the hajj quota within the next five years.

“So we all know that Indonesia has the largest numbers for umrah and hajj. And the Saudi government’s desire is to increase capacity twofold in the next five years,” Pandu concluded.

Historic Permission Granted

The Saudi Arabian government has reportedly approved the construction of Indonesia’s Kampung Haji in Mecca, with President Prabowo Subianto noting that Indonesia has become the first nation permitted to build such a facility.

“For the first time in history, a foreign country is allowed to own land in the holy city. The law was changed specifically for us,” the president stated during a full cabinet session in Jakarta earlier this week.

Understanding Kampung Haji Indonesia

Kampung Haji Indonesia will function as an integrated area serving as a central accommodation hub for pilgrims while providing comprehensive services including food and beverage facilities, transportation, and healthcare services for worshippers.

The concept originated from President Prabowo’s concern over the high mortality rate among pilgrims during hajj season. In the 2025 hajj season, 447 Indonesian pilgrims passed away in the Holy Land, predominantly due to health-related factors.

The project is targeted for development on land exceeding 80 hectares in the strategic Jabal Hindawiyah area of Makkah, with direct integration to the high-speed rail line and pedestrian walkways leading to Masjidil Haram (the Grand Mosque).

This landmark initiative represents not only a significant investment in pilgrim welfare but also positions Indonesia as a serious player in international Islamic commerce and services, potentially transforming how the world’s largest Muslim-majority nation supports its citizens’ spiritual journeys.

Original Article:

CNBC Indonesia. (2025, November 20). Danantara Mau Beli Lahan di Arab Saudi, Luasnya 2 Kali SCBD. Retrieved from https://www.google.com/amp/s/www.cnbcindonesia.com/market/20251119152114-17-686669/danantara-mau-beli-lahan-di-arab-saudi-luasnya-2-kali-scbd/amp