Exploring the Economic Potential of Hajj and Umrah
In 2025, the Hajj pilgrimage was last managed by the Ministry of Religious Affairs (Kemenag). Starting in 2026, it will be overseen by the new Ministry of Hajj and Umrah (Kemenhaj), established under President Prabowo Subianto and Vice President Gibran Rakabuming Raka’s cabinet. A new ministry brings fresh energy and approach. What distinguishes Hajj operations under Kemenag versus Kemenhaj? This differentiation is crucial.
A key distinction is the new Directorate of Hajj and Umrah Economic Ecosystem Development within Kemenhaj, which did not previously exist.
It is fitting that Jusuf Hamka, known as Babah Alung, a prominent Chinese-Indonesian entrepreneur, has been appointed as Amirul Hajj. As a businessman, Babah Alung is expected to analyse the economic opportunities within the pilgrimage through an entrepreneurial and commercial lens.
A longstanding concern is that financial and economic outlays from both the ministry and pilgrims are spent overseas, benefiting foreign entities while Indonesia remains merely a consumer and market for others, with little returning domestically. This trend is now being reversed. Three significant economic opportunities in Hajj operations are consumption, souvenirs, and sacrificial offerings (dam).
In past years, cooking spices and other consumables were imported, leading to capital outflow. Now, Kemenhaj’s Directorate of Hajj Economic Ecosystem Development is sending 100 tonnes of Indonesian-made pasta and ready-to-eat meals directly.
According to Professor Dr Jaenal Effendi, Director-General of Kemenhaj’s Economic Ecosystem Development Directorate, Indonesia must end its reliance on imported rice from Vietnam and the Philippines. To achieve this, Prof Jaenal has partnered with Bulog, securing 3,900 tonnes of local rice for 2026 Hajj pilgrims.
Using local rice supports Indonesian farmers, injecting funds back into the agrarian economy. With increased income, farmers can provide for their families, shop at local markets, purchase fertiliser, hire labour, and maintain their fields. This aligns with the Prabowo-Gibran administration’s food self-sufficiency programme, which is now on track to succeed.
The author shares personal experience from serving as a PPIH officer during the 2024-2025 Hajj season. Merchants near the Prophet’s Mosque in Medina frequently ask, “When do Indonesian pilgrims leave Medina for Mecca? After the Hajj rituals at Arafah, Muzdalifah, and Mina, do any Indonesian pilgrims still come from Mecca to Medina?” The author explains the schedule, noting that some pilgrims proceed directly to Mecca and return to Medina post-rituals. Upon hearing this, the merchants’ faces light up. When asked why, they replied that Indonesian pilgrims are generous and avid shoppers—more so than those from other countries.
While some Indonesian pilgrims purchase souvenirs for neighbours in Jakarta’s Tanah Abang or local Hajj supply stores nationwide, others insist on buying specific items directly in Mecca or Medina due to spiritual significance, doctrinal beliefs, authenticity, or simply to prove they were purchased at the holy sites.
Kemenhaj’s Economic Ecosystem Directorate clearly recognises this souvenir potential, aiming to channel these economic benefits back into Indonesia. This opportunity extends beyond the 221,000 Hajj pilgrims to Indonesia’s Umrah visitors—1.5 million in 2023, 2 million in 2024, and 547,122 in 2025.
With Indonesia’s Hajj Village set to launch, dedicated souvenir shops could cater to both Indonesian and international pilgrims. Merchants in the holy sites confirm many products—such as prayer beads, children’s toys, bags, agarwood, and sandalwood for perfumes—are sourced from Indonesia, though some come from China, India, and elsewhere. They frequently visit Indonesian markets like Tanah Abang, Jatinegara, Glodok, Bandung, Bogor, and Kalimantan, noting Indonesian pilgrims buy locally made goods in Medina and Mecca.
The most promising economic opportunity lies in the sacrificial offerings (dam) for Indonesian Hajj pilgrims performing tamattu’. Calculations indicate that 221,000 pilgrims would require…