Indonesia Proposes Higher 2027 Hajj Cost at Rp107.3 Million per Pilgrim

The Indonesian Ministry of Hajj and Umrah has proposed a significant increase in the cost of the Hajj pilgrimage for 2027, setting the proposed BPIH (Hajj Organizing Costs) at Rp107.3 million per pilgrim. This represents an increase of Rp19.9 million compared to the Rp87.4 million BPIH for 2026.

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The calculations are made with the assumption of an exchange rate of 1 US Dollar equal to Rp17,500 and 1 Saudi Riyal equal to Rp4,666.

Minister of Hajj and Umrah, Mochamad Irfan Yusuf, explained that the proposed figure considers efficiency, service quality improvements, and the sustainability of Hajj organization. The calculations assume an exchange rate of Rp17,500 to one US dollar and Rp4,666 to one Saudi Riyal. The proposed Rp107 million BPIH is allocated with Rp60,891,068 (56.73%) for costs in Saudi Arabia and Rp46,449,103 (43.27%) for domestic organizational costs, including average flight expenses.

Irfan cited several factors driving the increase, including unfavorable Rupiah exchange rates, rising flight and accommodation costs in Mecca and Medina, increased ground transportation and Masyair service fees, and enhanced healthcare services. Additionally, higher consumption costs in Saudi Arabia, distribution expenses for Medina accommodations, and the need to finance visas for canceled and replaced pilgrims contribute to the higher costs.

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The proposed figure was determined with consideration for efficiency, improvement of service quality, and the sustainability of organizing the hajj pilgrimage.

To mitigate the financial impact on pilgrims, the Ministry proposed a financing scheme where 60% of the costs would be covered by the Hajj Fund Management Agency's benefits, and the remaining 40% would be borne by the pilgrims through their travel costs. Irfan expressed hope for the implementation of this scheme, similar to the one used in 2022 post-Covid-19.

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The Ministry then proposed a financing scheme of 60 percent from the benefits of the Hajj Fund Management Agency and 40 percent from the hajj travel costs borne by each pilgrim.

Marwan Dasopang, Chairman of the House of Representatives' Commission VIII, deemed the proposed increase rational given the rising cost components. However, he urged the Ministry to negotiate with the Saudi government to reduce cost elements, thereby easing the burden on pilgrims and the Hajj Fund Management Agency. He believes the proposed figure can still be lowered.

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This proposal is put forward to alleviate the financial burden of pilgrims amidst projected increases. With this distribution, we calculate that the BPIH paid by pilgrims will not be much different from the BPIH of the previous year.