Hajj Costs Jump 26.5% as Oil Prices Surge, Govt to Cover Gap
Jakarta. Indonesia will absorb a sharp increase in Hajj costs for 2026, as surging global oil prices and heightened geopolitical risks in the Middle East drive up travel expenses for the world’s largest Muslim pilgrimage.
Hajj and Umrah Minister Mochamad Irfan Yusuf said total Hajj-related costs have climbed by 26.5% or Rp1.77 trillion (about $103 million), rising from Rp6.69 trillion to Rp8.46 trillion. The spike is largely tied to higher aviation fuel prices and additional risk-related charges.
“The increase is largely due to rising crude oil prices, which have affected flight costs for Hajj pilgrims,” Irfan told lawmakers during a parliamentary hearing on Tuesday in Jakarta.
The additional Rp1.77 trillion cost stems from proposals submitted by airlines transporting Indonesian pilgrims to Saudi Arabia, including state carrier Garuda Indonesia and Saudi Arabian Airlines.
Garuda has requested an additional Rp 974.8 billion, while Saudi Arabian Airlines has proposed a Rp 802.8 billion increase, according to Irfan.
Despite the spike, President Prabowo Subianto has instructed that the added burden should not be passed on to pilgrims.
“The president has made it clear that this increase should not be borne by Hajj participants,” Irfan said.
To cover the shortfall, the government plans to draw from the Hajj fund, known as BPIH, which is used to finance pilgrimage-related expenses.
Irfan added that the ministry is coordinating with the Attorney General’s Office of Indonesia to ensure the legal basis for using the funds under force majeure conditions.
Meanwhile, the cost of flights for Hajj officials accompanying pilgrim groups will be covered by the state budget, he said.
The rising costs come as demand for Hajj slots in Indonesia continues to far outstrip supply. The country receives an annual quota of about 220,000 pilgrims from Saudi Arabia — the largest allocation globally — but has roughly 5.7 million registered applicants nationwide. According to Deputy Minister Dahnil Anzar Simanjuntak, the waiting period for the regular Hajj program has stretched to as long as 26 years in some regions.
Indonesia, home to the world’s largest Muslim population, sends hundreds of thousands of pilgrims to Saudi Arabia each year, making it one of the biggest contributors to global Hajj travel demand.
Tags: Keywords:Related Articles
Profit-Taking Drags JCI Down 0.68% to 7,623 on Wednesday
JCI fell 0.68% to 7,623 as profit-taking offset improving global sentiment on easing Middle East tensions and steady domestic policy outlookIMF Sees Global Growth Down to 3.1%, Indonesia to 5%
Global growth is seen at 3.1% in 2026 as war-driven energy shocks raise inflation and pressure Asian economies, including Indonesia.Apindo Warns Production Could Stall Next Month on Supply Shortages
Apindo warns of supply disruptions and rising costs as Middle East tensions hit raw materials, raising risks to production stabilityHajj Costs Jump 26.5% as Oil Prices Surge, Govt to Cover Gap
Indonesia will absorb a 26.5% surge in 2026 Hajj costs driven by oil prices and geopolitical risks, shielding pilgrims from higher expenses.Will War on Iran and Godzilla El-Nino Lead to a Global Food Crisis?
Middle East conflict risks a triple shock to global food: fertilizer supply, energy costs, and climate.Will War on Iran and Godzilla El-Nino lead to a Global Food Crisis?
Global food crisis looms amid the Iran conflict, surging fertilizer prices, and the threat of an extreme El Niño disrupting food supply.ASEAN Aligns Policy Tools to Navigate Global Uncertainty
ASEAN advances policy coordination, payment connectivity, and financial integration to sustain growth amid global pressures.Rupiah Forecast to Weaken as US-Iran Tensions Fuel Inflation, Delay Fed Cuts
Rupiah seen weakening to Rp 17,150 as US-Iran tensions and rising inflation curb Fed rate cut hopes, pressuring emerging market currencies.Rupiah Falls to Rp 17,106 as Hormuz Risks and CPI Jitters Mount
Rupiah closed at Rp 17,106 per dollar as disruptions in the Strait of Hormuz and US inflation concerns outweighed ceasefire optimism.JCI Retreats as Iran Disputes Ceasefire Terms
JCI fell 0.56% as early gains faded, with investors turning cautious amid doubts over a fragile US-Iran ceasefire.The Latest
Industry Backs Indonesia’s Electric Motorcycle Transition Plan
Indonesia’s EV motorcycle push gains industry support, but infrastructure, policy clarity, and consumer readiness remain key challenges.Bekasi Requires Civil Servants to Use English While Working From Home
Bekasi requires civil servants to use English during WFH, aiming to boost global competitiveness and support rising foreign investment.Jakarta Stocks Defy Regional Sell-Off as Russia Oil Plan Lifts Sentiment
JCI rose 0.17% to 7,634 on Friday, defying regional weakness as Indonesia’s planned Russian crude imports and a stable S&P outlook supportedIndonesia Earmarks $28.7 Million to Cover Income Tax
Indonesia has earmarked Rp 494 billion or roughly $28.7 million to cover the Article 21 income tax of workers in strategic sectors.Indonesia Awaits Minister’s Green Light for E-Commerce Tax Rollout in Q2
Indonesia’s tax authority is ready to implement a 0.5% e-commerce tax, but rollout depends on final approval from Finance Minister.Most Popular
