Putting Hajj and Umrah Under One Regulatory System Has Negative Consequences for Umrah Operators

Indonesia’s decision to regulate Hajj and Umrah under one legal framework was intended to provide certainty, improve services, protect pilgrims and strengthen accountability. But for Umrah travel operators, the arrangement can create a different problem: rules designed for the state-managed Hajj system may be applied too heavily to a more flexible commercial industry.

The argument comes from Dodi Sudrajat, an Umrah and Hajj coordinator with ASITA, ITMA and Himpuh in West Java and founder of KHDI, and Wagiman, an Umrah and Hajj researcher and doctoral law lecturer at UTA’45 Jakarta. Writing in Republika, they examine the effects of Law No. 8 of 2019 on the organization of religious pilgrimages.

Hajj and Umrah operate differently, they say. Hajj depends heavily on government policy, quotas, bilateral relations with Saudi Arabia and the management of large numbers of pilgrims. Umrah relies more on travel services, contracts between operators and customers, and market conditions that can change quickly.

Under a single regulatory regime, Umrah operators may face growing licensing, reporting, oversight and business-standard requirements, as well as more complex administrative sanctions. The authors warn that smaller and midsize operators could struggle to compete, with compliance costs potentially passed on through higher Umrah package prices.

They also point to the industry’s changing costs and conditions, including airfares, hotels, transport, currency movements, departure seasons and partnerships in Saudi Arabia. Rigid rules could limit operators’ ability to respond quickly. The authors accept pilgrim protection as a legitimate goal, but argue that it must be pursued proportionately. Otherwise, they warn, regulation could become excessive and create a mismatch between required service standards and the financial, staffing, technological and business-network capabilities of different operators.