Jakarta. The Indonesian government has officially acquired a hotel and land in Thakher City, Mecca, in a deal worth $500 million, a move expected to accommodate up to 23,000 Indonesian Hajj and Umrah pilgrims.

Investment Minister Rosan Roeslani said on Wednesday that the Novotel Thakher City hotel purchased by Indonesia has a total capacity of nearly 4,400 rooms.

“We have acquired a hotel in the Thakher area with three towers, each consisting of 1,461 rooms,” Rosan said at the presidential palace in Jakarta.

In addition to the hotel, the government has also secured about five hectares of land directly opposite the property for future development. The site is planned to host additional hotels as well as a shopping center dedicated to serving the needs of Indonesian Hajj and Umrah pilgrims.

Once all planned developments are completed, the total accommodation capacity is expected to reach around 6,000 rooms, with the ability to house more than 23,000 pilgrims, Rosan said.

The acquisition forms part of President Prabowo Subianto’s broader plan to establish an Indonesian “Hajj Village” in Saudi Arabia, aimed at improving comfort, safety, and logistical efficiency for Indonesian pilgrims.

“The distance from this area to the Grand Mosque is only about 2.5 kilometers,” Rosan said.

He added that access to the Grand Mosque is expected to improve further with the construction of the Al-Hujun tunnel or bridge, which is targeted for completion in 2026 and will directly connect the Indonesian Hajj Village area with Masjidil Haram.

Indonesia sends more than 200,000 Hajj pilgrims to Saudi Arabia each year, the largest contingent of any country. In addition, more than 2 million Indonesians perform Umrah annually.

The acquisition of the hotel and land was carried out by the state investment body, Danantara Indonesia. Rosan also serves as chief executive of Danantara, which was established earlier this year.