Haj business not efficient, says KPPU

Desy Nurhayati , The Jakarta Post , Jakarta | Fri, 02/15/2008 10:11 AM | Headlines

The Business Competition Supervisory Commission (KPPU) has recommended the government allow the private sector to become involved in haj-related businesses to increase competition and efficiency.

The pilgrimage of Indonesian people is regulated and organized by the Religious Affairs Ministry, the only agency that has the authority to appoint companies to take part in haj business operations.

KPPU chairman Syamsul Maarif said the more players in the business, the more competitive and more accountable the pilgrimage organization in the future would be.

After meeting with President Susilo Bambang Yudhoyono, Syamsul said Indonesia's existing haj business was inefficient.

"We recommend the government revise its policy on haj management in the hope it can create healthier competition," he said.

With 210,000 Indonesians joining the haj pilgrimage annually, the business involves some Rp 6.3 trillion (US$685 million).

KPPU executives proposed recommendations of policies for various business sectors in the country, including the haj management business.

The Religious Affairs Ministry has faced constant criticism for poor pilgrimage management and services, as well as allegations about corrupt officials.

Religious affairs minister for 2001-2004 Said Agil Husin Al Munawar was convicted of graft and jailed for seven years in 2006.

The haj season last year saw hundreds of Indonesian haj pilgrims starve due to poor services in catering.

Early this year 1,912 pilgrims were left stranded in Saudi Arabia after the local authorities confiscated their passports.

Syamsul said the commission suggested the government put to tender at least flight and catering services for pilgrims.

"It will be better if the government holds an open bidding process for flight and catering companies and defines the measured service standards for them, instead of directly appointing them," Syamsul said.

KPPU also recommended eliminating the quota system for haj pilgrimage premium services, which applies to travel agents.

The government set the quota at 16,301 seats last year, which were divided among 60 travel agents.

"The quota should be eliminated and the agents should be able to compete to attract customers," Syamsul said.

Haj premium services, known as ONH Plus, is the only haj business open to private companies.

KPPU has asked the government to establish an independent haj management agency, which would serve as the operator, with the government acting as the regulator.

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