Economist Calls for Overhaul of Hajj Cost Structure to Anticipate Avtur Price Rise

JAKARTA — Economist from the Center of Reform on Economics (CORE) Yusuf Rendy Manilet is urging the government to restructure the Hajj cost framework to avoid dependence on the State Revenue and Expenditure Budget (APBN) assistance. The statement responds to the government’s plan to cover an additional budget of Rp1.77 trillion for Hajj flight needs using APBN, which is impacted by the rise in avtur prices. Yusuf stated that the Hajj Pilgrimage Management Cost Structure (BPIH) needs to be overhauled to be more responsive to price fluctuations. So far, he said, the flight cost component is set at the beginning without an adjustment mechanism, while the avtur component accounts for 30–40 percent of the total Hajj flight costs. “In the future, there needs to be a fuel surcharge clause or avtur hedging by Garuda and Saudia, so that price risks are not directly borne by the APBN or the pilgrims,” Yusuf said in Jakarta on Friday (17/4/2026). A comprehensive reevaluation of the Hajj cost scheme is also being pushed. This is because the current portion of the Hajj Pilgrimage Travel Cost (Bipih) is around 60 percent, and the benefit value from the Hajj Financial Management Agency (BPKH) is about 40 percent. “That benefit value is actually cross-subsidy from waiting pilgrims. If the APBN also covers it, it means there are three layers of subsidies, namely waiting pilgrims, BPKH, and now APBN. This is unhealthy and not sustainable,” he added.