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View all search resultsJet fuel spike, weak rupiah to blow haj budget by Rp 1 trillion
Meanwhile the umrah sector, which is fully operated by private players, continues to see relatively resilient demand even as operators and consumers absorb higher costs.
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Muslims participate in a special morning prayer around the Kaaba, Islam's holiest shrine, at the Grand Mosque complex in Mecca on June 6, 2025, to mark the start of the Idul Adha festival, which marks the end of their Haj pilgrimage. (Photo by/AFP)
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awmakers and analysts warn that soaring jet fuel prices and a weakening rupiah, driven by escalating tensions in the Middle East, could add as much as Rp 1 trillion to this year’s haj pilgrimage bill. To cushion the blow of the rising costs, whether to the state budget or to pilgrims themselves, they have urged the government to negotiate better deals with airlines and service providers in Saudi Arabia.
“If there is an increase in the total budget for the 2026 haj cost, which is estimated to reach around Rp 900 billion, it should be borne by the government,” said Hakam Naja, an economist at the Institute for Development of Economics and Finance (INDEF) Center for Sharia Economic Development, to The Jakarta Post on Tuesday.
He also warned the government about the risks of filling the gap using pilgrimage funds managed by the Haj Financial Management Agency (BPKH), which are contributed by both current and future pilgrims.
“Although it is burdensome, the government must prepare subsidies from the 2026 state budget for prospective haj pilgrims, such as a subsidy for domestic economy-class airfares amounting to Rp 2.6 trillion for two months starting in April,” he said.
Previously, House of Representatives Commission VIII chairman Marwan Dasopang also estimated additional expenses of between Rp 900 billion and Rp 1 trillion for the 2026 haj.
With jet fuel prices in Indonesia jumping by around 70 percent in April and the rupiah sliding past Rp 17,000 against the United States dollar, Hakam warned that the increase is likely to extend beyond airfare, affecting accommodation, food, local transportation and insurance costs in Saudi Arabia.
Read also: Govt prepares contingencies for haj amid war in Iran
