The Indonesian government is exploring the purchase of land in Mecca, Saudi Arabia, to develop a dedicated residential complex for Indonesian Haj pilgrims, dubbed "Kampung Haji" or the Indonesian Haj Village, aimed at accommodating the large number of Indonesian pilgrims and reducing the cost of Haj and Umrah services.

According to Rosan P. Roeslani, Head of Indonesia’s Sovereign Wealth Fund Danantara and Minister of Investment and Downstream Industry, the Saudi government has offered eight plots of land, each located approximately 1 to 2 kilometers from the Masjid al-Haram.

“Some plots are very close to the Grand Mosque, even directly adjacent,” Rosan said at the Merdeka Palace, Jakarta, on Wednesday, July 30, 2025.

He noted a significant breakthrough in negotiations: Saudi Arabia is willing to amend its laws to allow foreign ownership (freehold) of land in Mecca, specifically for Indonesia. The legal changes are expected to take effect in January 2026.

The eight land parcels offered vary in size from 16 to 80 hectares, with some areas being flat while others are hilly and still inhabited. Rosan confirmed that Indonesia will act as the sole bidder (private bidder) for the land acquisition, but declined to disclose the total investment value. He also stated that resolving land clearance and resettlement issues will be the responsibility of the Saudi government.

The Haj Village project will be spearheaded by Danantara, which is also tasked with submitting infrastructure and design proposals to the Saudi government by October 2025.

Minister of Religious Affairs Nasaruddin Umar supported the initiative, calling it a strategic move due to Indonesia's large pilgrim population. Each year, over 220,000 Indonesians perform Haj, while around 1.5 million undertake Umrah. The "Kampung Indonesia" will help lower accommodation costs and improve service efficiency for pilgrims.

While the village is under development, the Indonesian government plans to lease hotel accommodations in Mecca under three- to four-year contracts as an interim solution to meet immediate housing needs for pilgrims.