Bogor, W Java, Jan. 7 -- Indonesia has won a bid to acquire a hotel and land in Mecca to develop an Indonesian Hajj Village, a landmark deal enabled by changes in Saudi regulations, a senior official said on Tuesday.

State Secretary Prasetyo Hadi confirmed the win after Danantara CEO Rosan Roeslani reported it during a Red and White Cabinet retreat and annual briefing in Hambalang, West Java.

Roeslani told ministers Indonesia now owns a hotel in Mecca following what Prasetyo described as extraordinary diplomacy by President Prabowo Subianto, which opened access to foreign asset ownership.

Prasetyo said the deal marked the first time Saudi Arabia revised its rules to allow a foreign government to own assets, calling it a gift to Indones...