Purbaya Prepares Hajj Cost Compensation of Rp 1.77 Trillion, Where Does the Funding Come From?

Jakarta, CNBC Indonesia - The Ministry of Finance has addressed the source of funds to lower Hajj pilgrimage costs amid global oil price volatility. The budget required to compensate for aircraft fuel or avtur prices amounts to Rp 1.77 trillion.

The Director General of Economic and Fiscal Strategy at the Ministry of Finance, Febrio Nathan Kacaribu, did not explicitly disclose which state budget (APBN) position will be allocated to cover the Hajj avtur cost compensation. However, he assured that state revenues still have the potential to increase to compensate for those costs.

“Oh, no need to ask from which position, anyway, we manage it together, as I said earlier that there are increasing revenues. That’s certain, it depends on how optimistic we are later,” said the Director General of the Directorate General of Economic and Fiscal Strategy at the Ministry of Finance, Febrio Nathan Kacaribu, after a discussion at the Government Communication Agency (BAKOM RI) in Jakarta on Thursday (9/4/2026).

Febrio explained that the government is also seeking ways to obtain additional revenues, particularly from several tariffs to be imposed on mining commodities.

“Not to mention, we are currently working with the Ministry of Energy and Mineral Resources to look at several tariffs or potential increases from certain commodities for revenues. So, we will have additional revenues,” he said.

In addition, in line with the president’s directive, according to Febrio, the government will also carry out government spending efficiency. Budget reallocations are also being implemented in accordance with governance to keep the deficit below 3%.

“As I mentioned earlier, and the minister has conveyed that we keep the deficit around 2.9%,” said Febrio.

Previously, at the Government Working Meeting at the State Palace on Wednesday (8/4/2026), President Prabowo Subianto decided to reduce Hajj costs by Rp 2 million, despite a significant increase in aircraft avtur prices. The resulting cost difference will be compensated by the state.

Finance Minister Purbaya Yudhi Sadewa also explained that the additional budget to compensate for Hajj costs comes from the results of budget reallocations carried out through efficiency programmes.

“If efficiency is taken, it’s put in one place, right. Later, it will be channelled to the earlier one, to the new expenditure,” said Purbaya at the State Palace in Jakarta on Wednesday (8/4/2026).

Purbaya is confident that the APBN will be sufficient to anticipate energy price pressures caused by the conflict in the Middle East between Iran, the United States, and Israel since February 2026. This is because the conflict is now starting to subside and is contributing to lowering global crude oil prices.

“Why is it sufficient? Because it’s for a year. We hope with the assumption of US$100, hopefully fuel, global oil has already dropped. So, the room is still quite large,” Purbaya emphasised firmly.