Indonesian sovereign wealth fund Danantara bids US$1 billion for land at Mecca site: sources
If Danantara’s bid succeeds, it would mark the sovereign fund’s first overseas investment
[JAKARTA] Indonesia’s Danantara has bid US$1 billion for a large plot of land near the Grand Mosque in Mecca, according to people familiar with the matter, as the sovereign wealth fund looks to develop a huge site with hotels to serve Hajj pilgrims from the South-east Asian nation.
Should Danantara be successful with its offer, the purchase would mark the fund’s first overseas investment, the people said, asking not to be identified discussing information that’s private.
Representatives for Danantara did not respond to a request for comment.
Danantara has repeatedly said that developing a site in Mecca, a city in western Saudi Arabia about 70 km inland from the Red Sea, is a mandate from President Prabowo Subianto, who believes the creation of a ‘Hajj Village’ will make it easier for Indonesians to make their pilgrimage to the holy place. Prabowo said during a Cabinet meeting last month that some 90 other parties were vying for the plot.
Danantara’s chief executive officer, Rosan Roeslani, who is also the nation’s investment minister, has said previously the land in question is located around two km from the Grand Mosque itself.
The mosque welcomes around two million pilgrims during Hajj and over 10 million visitors annually for prayers.
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Creating a Hajj precinct specially for Indonesians is widely seen as a move by Prabowo to shore up his popularity with voters.
The multibillion-US dollar project is particularly significant given that Indonesia is home to the world’s largest Muslim population and has one of the highest numbers of pilgrims, with some 221,000 people making the journey earlier this year.
Prabowo has consistently called for his government to reduce pilgrimage costs and waiting time to perform the Hajj.
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Under Islam’s Five Pillars, every Muslim who is physically and financially able is required to perform the Hajj pilgrimage to Mecca at least once in their lifetime. BLOOMBERG
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