BUMN observer and Director of NEXT Indonesia Center, Herry Gunawan, assessed that the acquisition of hotels in Mecca did not answer the main purpose of the establishment of Danantara as stipulated in PP Number 10 of 2025 and the BUMN Law Number 16 of 2025, namely accelerating investment and strengthening the national economy.
"Danantara's mandate, especially, is to accelerate investment in the country," said Herry through a short message received by VOI, in Jakarta, Monday, December 22.
In terms of business, Herry assessed that the acquisition of hotels in Mecca had a high risk because the implementation of the hajj was seasonal. Hajj activities, he said, on average only last about a month each year, while hotel operating costs must be borne throughout the year.
"Hajj is a seasonal event, on average about one month every year. There are still 11 months the hotel will be empty, while operating costs, both fixed and variable-fixed, must be borne. So, the profit during the Hajj season can be minus because it is used to cover the operating costs for a year," he said.
In addition, Herry also highlighted the limited capacity of the hotel acquired by Danantara. With a capacity of around 4,383 pilgrims, the hotel is considered not comparable to the number of Indonesian pilgrims, which reaches around 200,000 people per year.
"Even if the accommodation of pilgrims can be controlled, for example, it is mandatory to reside in a hotel owned by Danantara, the impact is very limited because the capacity of the hotel is far from the real need," said Herry.
If the target is umrah pilgrims who take place throughout the year, Herry assessed that Danantara will still face market mechanisms. According to him, umrah organizers cannot be forced to use Danantara's hotels.
"The organizer of the umrah cannot be forced to use Danantara's hotel. Their choice depends on what is more efficient, both in terms of price, location and comfort," he said.
Furthermore, Herry reminded that the contribution of investment to Indonesia's Gross Domestic Product (GDP) over the past 20 years has averaged only around 29 percent per year, with economic growth of around 5 percent. This figure is still behind India and China.
"So far, the contribution of investment in the country, about 85 percent comes from the private sector. From the government and Danantara, only the rest. This is a homework that should also be a priority for Danantara, instead of buying properties and land in Saudi Arabia," he said.
In terms of governance, Herry assessed that the stabilization of the cost of accommodation for pilgrims did not have to be done through ownership of property. The long-term rental scheme is considered more rational and low risk.
"You don't have to own the property. Long-term leases, for example, 10 years, can actually be more rational, because you can share the risk with the hotel owner. Costs can also be managed well," he said.
Herry also highlighted the unclear status of the company acquired by Danantara. On one hand it is called a BUMN, but on the other hand the state's shareholding and state privileges are not clear.
"The status of the company acquired by Danantara must be a state-owned enterprise, so that it becomes an object of BPK audit. Currently, it still has a double meaning. You want to call it a state-owned enterprise (in accordance with the State-Owned Enterprise Law 16/2025), but the shareholders are not the state. Or, there is no special right owned by the State, such as red and white shares," said Herry.
According to Herry, the potential losses from the acquisition could become a legal problem in the future if it is not managed transparently and accountable.
"The potential loss in the acquisition of hotels and land has the potential to become a legal problem in the future if there is a loss, as has been the case in many cases of SOEs," he said.
Previously, the Indonesian government had acquired a hotel in the Tahrir area with a total of 1,461 rooms spread across three towers for the residential area of Indonesian pilgrims in Mecca, Saudi Arabia, which is part of the Indonesian Haji Village project.
The news was conveyed by Minister of Investment and Industrialization Rosan Roeslani, at the Presidential Palace complex, Jakarta, after delivering an actual report on the progress of the Haji Village development in Saudi Arabia to President Prabowo Subianto.
"We have bought a hotel in Tahrir. It is a hotel with a room capacity of 1,461 rooms in three towers," he said as reported by ANTARA, Wednesday, December 17.
He said that this project is targeted to start running in January 2025 and is projected to increase the comfort and efficiency of accommodation for Indonesian pilgrims and umrah.
The hotel has a capacity to accommodate around 4,383 Indonesian pilgrims.
In addition, the government also purchased land measuring approximately 5 hectares in the area in front of the hotel for further development.
On the land, continued Rosan, around 13 additional towers and one shopping center will be built for Indonesian pilgrims and umrah.
If all the towers are completed, the total room capacity is estimated to reach 6,025 rooms with a capacity of more than 23,000 pilgrims.
"The distance is only about 2.5 kilometers from the Grand Mosque," said Rosan.
