What happened
Danantara Indonesia, a state investment fund, bought the Novotel Thakher Makkah hotel through PT Danantara Investment Management. The hotel has 1,461 rooms and suites. Together with it the fund acquired adjoining land of 4.4 hectares. The fund itself announced this, and detikProperti published the story on 25 October 2026.
The hotel is meant for Hajj and Umrah pilgrims. Danantara called the purchase a long-term commitment that will be carried out in stages, with attention to governance and caution.
Danantara Indonesia is a state body that manages investments. The article names it as the buyer, while the seller was the developer Thakher Development. The deal price is not disclosed, and without it the buyer's benefit cannot be judged.
Why the deal is called a first
Citing Arab News, the source writes that Indonesia became the first foreign country to buy property in Saudi Arabia. This became possible after rules on selling property to foreigners were relaxed. The law on property ownership by non-citizens of the kingdom took effect in January.
The complex's developer, Thakher Development, handed over documents confirming completion of the sale. Its chief executive, Faisal Shaker, called it a historic moment. He said ten months passed from signing to transfer of title.
The new rules concern foreign buyers of property in the kingdom. The source does not list their conditions, district restrictions or taxes, so no conclusions can be drawn from this article about how accessible the Saudi market is for private investors.
What is planned for the plots
Danantara plans to develop 14 plots with a combined area of 44,088 square metres. According to the source, they could host hotels with roughly 6,000 additional rooms and a shopping centre with more than 90 retail outlets. The investment is estimated at over 2 billion Saudi riyals, which at the rate stated in the article is about Rp 9.6 trillion.
These are plans, not approved construction decisions. For developing the plots Danantara intends to work with a local partner, Al-Khomasiah, relying on commercial feasibility guidance, licensing and governance standards.
The source says the 14 plots are planned to hold both a hotel part and a retail zone. It gives no detailed schedule, stages or permits. Until development documents are published, this remains a statement of intent.
Location and demand
The Thakher Makkah complex covers 320,000 square metres and sits 1.2 kilometres north of the Masjid al-Haram. The purchase fits the kingdom's goal of hosting 30 million Umrah pilgrims a year by 2030, up from 8.5 million in 2019.
This target is stated by the Saudi authorities. The source does not say whether it will be reached.
A rise in pilgrims from 8.5 million in 2019 to 30 million by 2030 would be more than a threefold increase. That arithmetic follows from the source's figures and is not our forecast, and the growth itself depends on many factors outside the article.
What it means for Indonesia
The deal shows Danantara investing abroad in hotel assets tied to Indonesian pilgrims. The article gives no purchase terms, hotel price or financing structure.
There are no direct consequences for Bali. It is an example of a state fund choosing assets next to a steady flow of guests.