Indonesia’s Plan to Manage Hajj Costs Amid Global Pressures

  • 01 Jul 2026 22:32 WIB
  •  Voice of Indonesia
Key Points
  • Hajj Fund Management Agency (BPKH) cuts 2026 operational cost ceiling by IDR 100.31 billion, or 18.59 percent, from IDR 539.63 billion to IDR 439.32 billion.
  • Hajj costs covered through fund management with around 60 percent financed from managed funds, while pilgrims are expected to pay about 40 percent directly.

RRI.CO.ID, Jakarta - The Indonesian government and the Hajj Financial Management Agency (BPKH) are developing cost-reduction measures to help pilgrims with the 2027 Hajj.

This comes as the Hajj Pilgrimage Cost (BPIH) is projected to increase due to global factors. Ensuring that public costs are manageable is BPKH's primary goal.

BPKH has cut its 2026 operational cost ceiling by IDR 100.31 billion, or 18.59 percent, from IDR 539.63 billion to IDR 439.32 billion.

The Head of the BPKH Implementing Agency, Fadlul Imansyah, stated that these savings are part of an effort to maintain the sustainability of Hajj funds while increasing their contribution to Hajj financing.

"BPKH would maintain optimal services for pilgrims, governance, and performance for Hajj financial investment development despite a budget cut of IDR 100 billion," said Fadlul in Jakarta on Wednesday, July 1, 2026, as quoted by Antara.

He believes efficiency means more than cutting expenses. It's a strategy for managing trust funds for millions of pilgrims and generating additional benefits.

"All efficiency measures are aimed at maintaining the sustainability of Hajj funds. These funds are pilgrims' trusts that must be managed responsibly to ensure their benefits are maintained," he said.

Fadlul added that this policy aligns with government directives on spending efficiency across ministries and institutions.

Member of the BPKH Executive Board for Planning and Direct Investment, M Arief Mufraini, ensured that budget adjustments were made through evaluation to avoid disrupting strategic programs or investments.

"We are ensuring that the planning function continues to operate optimally so that the direct investment strategy can be implemented prudently, productively, and in a way that increases the value of Hajj funds," he said.

Conversely, the government acknowledges that the cost of organizing the 2027 Hajj pilgrimage could increase due to global economic pressures.

Deputy Minister of Hajj and Umrah, Dahnil Anzar Simanjuntak, stated that rising flight costs due to aviation fuel prices, accommodation costs in Saudi Arabia, and changes in service standards contribute to the increase.

Furthermore, the Saudi Arabian government has eliminated category D services, moving all services to category C, resulting in higher costs. However, the government ensures that the costs pilgrims pay remain lower.

"The government has been instructed to find the best scheme so that people can continue to enjoy the convenience of performing the Hajj pilgrimage despite challenging global economic conditions," Dahnil said.

The government is reviewing changes to the Hajj financing composition. In 2026, 39 percent of the 2027 Hajj costs were covered by the fund, while the remaining 61 percent came from pilgrims. The government aims to reverse this for the 2027 Hajj.

In the current proposal, the Hajj Fund Management Agency (BPKH) is projected to cover approximately 60 percent of the Hajj costs through Hajj fund management, while pilgrims are expected to pay approximately 40 percent directly.

According to him, optimizing these benefits is possible due to the accumulation of managed funds generated during the COVID-19 pandemic, when Hajj was suspended in 2020-2021, and departure quotas were limited in 2022.

The entire financing scheme is still being discussed with the Indonesian House of Representatives (DPR RI), while prioritizing the principles of prudence, sustainability of Hajj funds, improved service quality, and support for pilgrims.

"In principle, services will improve, but the burden on the community must still be eased," said Dahnil. ***

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