Indonesian Political, Business & Finance News

Global Oil Prices Surge 52%, Hajj Costs for 2026 and Tourism Sector on the Brink

| | Source: KOMPAS Translated from Indonesian | Economy
Global Oil Prices Surge 52%, Hajj Costs for 2026 and Tourism Sector on the Brink
Image: KOMPAS

JAKARTA, KOMPAS.com - Geopolitical tensions in the Middle East due to the Iran conflict with the US-Israel are beginning to have real impacts on Indonesia. Several strategic sectors, from energy prices and Hajj pilgrimage services to tourism and state foreign exchange, are potentially affected by the surge in global oil prices and disruptions to international flight routes. In the energy sector, the Middle East conflict has triggered a 52.21% rise in global crude oil prices, from $67.02 per barrel to $102.01 per barrel as of 30 March 2026. This increase could influence domestic fuel oil (BBM) prices and air transportation costs through the spike in aviation fuel prices. These impacts are also a concern for the government in organising the 2026 Hajj pilgrimage. “Insha Allah, we will strive hard not to add costs to the pilgrims. We will seek other sources that we can optimise later,” said Gus Irfan at Kompas Tower, Jakarta, on Tuesday (31/3/2026). According to him, the Middle East conflict not only affects the rise in aviation fuel prices but also potentially triggers changes in flight routes to Saudi Arabia to ensure pilgrim safety. Such route changes could increase flight operational costs. Currently, Deputy Minister for Hajj and Umrah Dahnil Anzar Simanjuntak is also in Saudi Arabia to ensure the smooth running of the 1447 Hijriah Hajj pilgrimage. “As per the President’s directive, the safety and security of Hajj pilgrims is the top priority. Therefore, we are mitigating various possible scenarios,” said Gus Irfan. Meanwhile, the tourism sector is also under pressure due to the closure of Iranian airspace, which has led to the cancellation of hundreds of flights to Indonesia. Tourism Minister Widiyanti Putri Wardhana revealed that from 28 February to 28 March 2026, there were 770 flights from six cities in the Middle East that were cancelled, namely Abu Dhabi, Doha, Dubai, Jeddah, Madinah, and Muscat. “In total, 770 flights were cancelled, with a potential loss of 60,752 international tourist visits and Rp 2.04 trillion in foreign exchange,” said Widiyanti, during a Commission VII DPR meeting at the DPR Building, Senayan, Jakarta, on Wednesday (1/4/2026).

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