Cost of haj pilgrimage made more transparent

JAKARTA (JP): The good news is that the official cost of the haj pilgrimage for next year has been slashed by nearly 13 percent from US$3,144 to $2,737. The bad news is that in rupiah terms, this means the cost has more then trebled from Rp 8.8 million to Rp 27.4 million.

The price rise comes in spite of the fact that for purposes of calculating the new cost the rupiah has been pegged to an exchange rate of Rp 10,000 against the American dollar, meaning that the government will, through Bank Indonesia, subsidize any shortfall if the actual exchange rate is above the assumed rate when payment is made, the Ministry of Religious Affairs said yesterday.

If the rupiah strengthens to below Rp 10,000, the central bank will refund the difference to pilgrims, the ministry's director general of haj affairs said.

Mubarok said that for the first time, the haj fee had been set jointly by his ministry, the Indonesian Ulema's Council and House of Representatives Commission VII for religious affairs.

He said this made the process more transparent.

In the past, the fee was set by presidential decree. The system used to calculate the fee was shrouded in mystery and many believed the government and other state and private agencies involved in the operation were reaping massive profits at the expense of haj pilgrims.

The Ministry of Religious Affairs coordinates the departure of around 200,000 Indonesians for the holy pilgrimage to Mecca in Saudi Arabia every year, then ensures all return safely to Indonesia once the ritual has been completed.

Under the new system, flag carrier Garuda Indonesia has been stripped of its monopoly to fly Indonesian pilgrims.

Mubarok said that next year the government would also use planes from Saudi Arabia Airlines to assist in the haj airlift operation.

He said the government had been able to make a significant saving by ending Garuda's monopoly. In the past, pilgrims each had to pay $1,650 for a return plane ticket. Next year the cost will be cut to $1,200.

The government has also slashed $100 from Garuda's royalties and a $30 insurance fee from the cost of the trip. An additional charge of $450 imposed by Garuda has also been eliminated.

But other costs, including food and accommodation in Saudi Arabia, have gone up.

The Ministry of Religious Affairs said that about 95 percent of the total haj fee is denominated in dollars. Almost 40 percent of the total cost goes toward a return airfare, 35 percent is required to cover accommodation in Saudi Arabia, 20 percent for living costs and the rest goes toward operational expenses within Indonesia.

The fee excludes medical checks, transportation within Indonesia, additional trips around Mecca and Jeddah, and haj donations to the Islamic Development Bank.

Mubarok said registration for next year would begin on Sept.1 and last until Oct. 31 or until Indonesia's quota of 203,000 pilgrims had been taken up. In the past, the quota has been filled within the first week of registration.

The first pilgrims will leave Indonesia on Feb. 24 next year. (01)