MUI: Hajj 'Subsidy' a Misnomer as Funds Come from Pilgrims, Not State Budget

The Indonesian Ulema Council (MUI) has stated that the financing scheme for the hajj pilgrimage should be returned to the principle of manistaṭā’a ilaihi sabīlā, meaning the obligation is only for Muslims who are capable. MUI Deputy Chairman Cholil Nafis argued that the term ‘subsidy’ in hajj costs is inaccurate because the funds do not come from the government budget, but from the development of initial deposits made by prospective pilgrims. ‘Actually, there is no subsidy in the hajj costs, because it is their own money. The returns generated during the waiting list period belong to them. If a virtual account is used, there is no subsidy,’ he said in Jakarta on Wednesday.

This statement responds to the government’s proposal for the 2027 Hajj Travel Cost (BPIH), set at Rp107.34 million per person, an increase from the previous Rp87.4 million. To maintain affordability, the Ministry of Hajj and Umrah proposed a scheme where 60 percent of the cost comes from the value of benefits managed by the Hajj Financial Management Agency (BPKH) and 40 percent is paid directly by the pilgrim. Cholil believes the current profit-sharing distribution needs review to ensure fairness for all prospective pilgrims, including those still on the waiting list. He noted that the majority of the returns are currently given to those departing, while those waiting receive very little, thus failing to achieve equitable distribution.

Echoing this view, MUI Deputy Chairman Anwar Abbas emphasised that the obligation to perform the hajj is intrinsically linked to istithaaah, encompassing health, material, and mental capability. He stressed that the obligation does not apply to those who are not capable.