Muhammadiyah Chairman Rejects Hajj Subsidy Scheme, Urges Pilgrims to Pay According to Means

Muhammadiyah Central Board Chairman Anwar Abbas has called on the government to reconsider a proposed Hajj financing scheme for 2027, which would see 60 per cent of costs covered by the benefit value of Hajj funds and 40 per cent paid directly by pilgrims. He argued that each prospective pilgrim should bear the entire cost of performing the Hajj, in accordance with the principle of istitha’ah, or financial capability.

According to Buya Anwar, as he is familiarly known, Islamic law stipulates that the obligation to perform Hajj only applies to Muslims who possess the necessary means, including financial capacity. He therefore deemed it inappropriate for Hajj expenses to be understood as something requiring subsidies or assistance from other parties. “Every person who performs the Hajj must bear all the costs of their pilgrimage. There is no concept of subsidy or aid,” he told Republika.co.id on Wednesday.

He was responding to a proposal from the Indonesian Ministry of Hajj and Umrah, which set the 2027 Hajj Travel Cost (BPIH) at Rp 107,340,172 per pilgrim. Buya Anwar stressed that while this figure represents the total cost, the government must account for the initial deposit funds that pilgrims have already placed with the Hajj Financial Management Agency (BPKH), along with the returns generated from their management.

He illustrated that if a prospective pilgrim had deposited Rp 25 million and the management of those funds over 20 years yielded a net benefit of Rp 20 million, the total amount belonging to the pilgrim would be Rp 45 million. Consequently, the pilgrim would only need to pay the remaining balance of approximately Rp 62.3 million. He emphasised that, under sharia principles, the benefits derived from managing the Hajj deposits are the property of the depositor, and the government cannot use them for other purposes without the owner’s consent.

Buya Anwar, who also serves as Deputy Chairman of the Indonesian Ulema Council (MUI), urged that the management of Hajj funds be conducted transparently to avoid mixing pilgrims’ rights with other interests. He reiterated that the entire cost of organising the pilgrimage is the responsibility of each individual pilgrim, and those who are unable to pay the full amount should postpone their departure until they are financially capable. He therefore requested that the ministry’s proposed financing composition be reviewed.