Indonesian Political, Business & Finance News

Government proposes new scheme to keep Hajj costs affordable for pilgrims

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Government proposes new scheme to keep Hajj costs affordable for pilgrims
Image: ANTARA_ID

The government is proposing a new financing scheme for the organisation of the Hajj pilgrimage to ensure that costs payable by pilgrims remain affordable amid a potential increase in the 2027 Hajj Operational Costs (BPIH).

“President Prabowo’s directive from the outset has been to ensure that our Hajj pilgrims in 2027 do not face difficulties or are burdened,” said Deputy Minister of Hajj and Umrah Dahnil Anzar Simanjuntak at Soekarno-Hatta Airport, Banten, on Thursday.

Dahnil stated that the potential rise in BPIH is driven by increases in nearly all cost components of organising the Hajj, from the US dollar exchange rate and avtur prices to tariff hikes for various services set by the Saudi Arabian government, including services in the Masyair area.

To prevent an increased burden on pilgrims, the government is proposing a change in the composition of BPIH funding sources to Commission VIII of the Indonesian House of Representatives (DPR RI).

Dahnil explained that for the 2026 Hajj, approximately 61 per cent of the BPIH was covered by pilgrims’ deposits (Bipih), while 39 per cent came from the Value-Added Benefits managed by the Hajj Financial Management Agency (BPKH).

He said this scheme will still be discussed with the DPR during BPIH deliberations. The government hopes the proposal will receive support so that the increase in Hajj operational costs does not impact the amount pilgrims must pay.

Dahnil added that the government and the DPR share a commitment to maintaining the affordability of Hajj costs while ensuring the quality of services for pilgrims is preserved.

“That is what we are proposing to the DPR. We will discuss it in the DPR and we hope the DPR can agree. If they agree, then the composition will be 40 per cent paid by pilgrims and 60 per cent paid through the value-added benefits,” he said.

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