Tangerang. Indonesia is stepping up efforts to build an integrated Hajj and Umrah economic ecosystem, seeking to capture more value from the world’s largest outbound pilgrimage market and curb pressure on its services balance.

With more than 200,000 Hajj pilgrims and roughly 2 million Umrah pilgrims traveling abroad each year, Southeast Asia’s largest economy sees a sizeable opportunity to develop a domestic value chain spanning logistics, transport, hospitality, and food services.

The government has made the initiative a priority as it looks to stabilize foreign exchange flows, in line with President Prabowo Subianto’s directive to reduce capital outflows and boost inflows.

“The synergy between ministries and state-owned enterprises in Hajj logistics shipments, which begins in 2026, is just the first step,” Ferry Irawan, a deputy at the Coordinating Ministry for Economic Affairs, said Thursday at a launch event in Tangerang. “It will be expanded to other areas such as souvenir shipments and year-round food supply for Umrah pilgrims, which can help contain the widening services deficit and support economic growth.”

The push is part of the government’s broader “Indonesia Incorporated” strategy, which calls for closer coordination among ministries, state firms, and private stakeholders to strengthen domestic participation in sectors traditionally dominated by foreign providers.

As an early move, authorities have begun shipping Indonesian-made pasta seasonings and ready-to-eat meals for pilgrims, aiming to increase the use of locally produced goods abroad. The logistics effort is being handled through a collaboration between flag carrier Garuda Indonesia and postal operator Pos Indonesia, with a focus on improving efficiency and lowering costs.

The first phase will see 100 tons of food products shipped between April 2 and April 6, followed by a second batch of 130 tons scheduled for April 17 to April 29.

The initiative comes as Indonesia grapples with a persistent services deficit. Bank Indonesia data show the country recorded a $19.8 billion shortfall in its services account in 2025, driven largely by transportation spending. A portion of that deficit is linked to pilgrims’ reliance on foreign logistics and catering providers during Hajj and Umrah.

Officials say increasing the share of services handled by domestic firms could help retain foreign exchange and ease the deficit.

Jaenal Effendi, director general for Hajj and Umrah economic ecosystem development, said stronger coordination between ministries and state firms is key to ensuring broader economic benefits beyond the pilgrims themselves.

“The ecosystem we are building should not only improve services for pilgrims but also create multiplier effects for the wider economy,” he said.

Authorities also expect the logistics framework to expand beyond the annual Hajj season to support year-round Umrah activities, including catering, transport, trade and souvenir distribution—areas where Indonesian companies could gain a larger foothold.

Haryo Limanseto, an expert staff member at the Coordinating Ministry for Economic Affairs, said the government is moving to reposition Hajj and Umrah as not only religious journeys but also economic drivers.

“Going forward, when we talk about Hajj and Umrah, we are no longer only discussing the ritual aspects,” he said. “We are also looking at how this ecosystem can generate added value for the national economy.”

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