Indonesian Political, Business & Finance News

To Lower Hajj Costs, Ministry of Hajj Proposes 60% of 2027 BPIH Be Subsidised by Benefit Value

| | Source: REPUBLIKA Translated from Indonesian | Social Policy
To Lower Hajj Costs, Ministry of Hajj Proposes 60% of 2027 BPIH Be Subsidised by Benefit Value
Image: REPUBLIKA

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 Travel 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 Dahnil Anzar Simanjuntak at Soekarno-Hatta Airport, Banten, on Thursday (2/7/2026). Dahnil stated that the potential increase in BPIH is triggered by rising costs across almost all components of Hajj operations, from the dollar exchange rate and avtur prices to increased tariffs 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. Dahnil explained that for the 2026 Hajj season, approximately 61 per cent of the BPIH was covered by pilgrim deposits (Bipih), while 39 per cent came from the benefit value managed by the Hajj Financial Management Agency (BPKH). In the proposal for the 2027 Hajj season, the government is putting forward the reverse scheme, with around 40 per cent of costs borne by pilgrims and 60 per cent met through the benefit value. He said this scheme will still be discussed with the House 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 House share a commitment to maintaining the affordability of Hajj costs while ensuring the quality of services for pilgrims is preserved.

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