Acquisition aims to build a Kampung Haji with commercial facilities for Indonesian pilgrims
Indonesia is preparing to make history by acquiring land in Makkah, Saudi Arabia, to build a Kampung Haji (Pilgrim Village). This initiative, led by investment body Danantara, follows recent changes in Saudi law allowing foreign ownership of land in the holy city starting January 2025.
Legal Reform Enables Landmark Purchase
According to Investment Minister Rosan Roeslani, Saudi Arabia’s Royal Commission for Makkah has offered eight plots of land to Indonesia, ranging from 16 to 80 hectares and located 1–2 km from the holy city. The planned purchase is possible due to an upcoming amendment to Saudi property laws, which will grant foreigners freehold ownership rights in Makkah for the first time.
Rosan emphasized that this shift marks a breakthrough in bilateral cooperation, stemming from President Prabowo Subianto’s meeting with Crown Prince Mohammed bin Salman. “We have been contacted directly by the Saudi government to proceed with the application for infrastructure and design by October,” he said.
Kampung Haji: Beyond Pilgrim Services
The Kampung Haji will primarily serve Indonesian pilgrims, providing accommodation, facilities, and enhanced services during Hajj and Umrah. At the same time, the site will incorporate commercial areas to boost economic activity. “Danantara will lead this project, combining both religious and commercial functions,” Rosan stated.
Strategic Land Plots Offered
The offered plots vary in size and proximity, with smaller parcels closer to the Grand Mosque and larger plots situated farther away. The Saudi government has committed to relocating current residents from the chosen sites, ensuring Indonesia bears no compensation burden.
Commercial and Cultural Significance
While the Kampung Haji focuses on pilgrim welfare, it also carries strategic economic value. Developers see potential for hotels, retail, and service hubs catering to the millions of annual visitors to Makkah. This aligns with Saudi Arabia’s broader plan to modernize and internationalize the city’s infrastructure.
Support From Public-Private Partnerships
The project reflects Indonesia’s “gotong royong” spirit of shared economic development, involving government agencies, state-linked investment arms, and private stakeholders. Danantara’s leadership will ensure that the project aligns with both spiritual and commercial goals.
Next Steps and Outlook
Indonesia expects the legal amendments to be effective by January 2025, with land acquisition procedures following shortly after. Construction of the Kampung Haji is planned to commence once ownership is secured and regulatory approvals finalized.
This landmark acquisition positions Indonesia as one of the first foreign nations to own land in Makkah, highlighting deepening ties with Saudi Arabia. For Indonesians and regional observers, the Kampung Haji project symbolizes a blend of spiritual service and strategic economic diplomacy.
Sources: CNBC Indonesia (2025), Tirto ID (2025)
Keywords: Indonesia Makkah Land, Danantara Pilgrim Village, Saudi Law Change, Kampung Haji Development, Indonesian Pilgrims
