Indonesia Aims to Strengthen Hajj and Umrah Economy to Balance Foreign Exchange
Jakarta. The Indonesian government is focusing on strengthening the Hajj and Umrah economic ecosystem as part of efforts to maintain national foreign exchange stability, in line with President Prabowo Subianto's directive to reduce cash outflows and boost inflows.
The initiative was discussed during a face-to-face meeting between Chief Economic Affairs Minister Airlangga Hartarto and Deputy Minister for Hajj and Umrah Dahnil Anzar Simanjuntak in Jakarta on Thursday.
During the meeting, Airlangga emphasized the importance of an ecosystem approach to managing the Hajj and Umrah economy so that its benefits can be felt more broadly within the country. “Minister Airlangga conveyed that the Hajj and Umrah economic ecosystem must be managed in an integrated, cross-sectoral manner. With proper orchestration, we can reduce cash outflows while simultaneously increasing cash inflows for the national economy,” said Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs.
Deputy Minister Dahnil added that the annual funds circulating in the Hajj and Umrah sector reach around Rp40 trillion ($2.38 billion), with approximately 80% still flowing abroad. The government is targeting a reduction of cash outflows to nearly 50% to create a more balanced flow of foreign exchange.
The meeting also covered optimizing the use of the national QR payment system (QRIS) to encourage transactions in rupiah and boosting Indonesian tourism promotion in the Middle East. Each year, around 2.6 million Indonesian Umrah pilgrims and 221,000 Hajj pilgrims travel to Saudi Arabia, while inbound tourism from the region remains around 33,000 visitors annually.
The government sees potential to increase inbound tourism through collaboration with national travel agencies and airlines. Additionally, it aims to strengthen trade and logistics support, including the development of bonded logistics centers to facilitate exports of Indonesian commodities to Saudi Arabia.
Cross-ministerial synergy involving trade, industry, tourism, agriculture, and logistics will be coordinated to ensure policies are effective. “We need to curb cash outflows. All relevant sectors must move together so that the Hajj and Umrah economic ecosystem delivers real impact on the domestic economy,” Haryo said.
Through this integrated approach, the government hopes that Hajj and Umrah activities will not only remain routine religious practices but also contribute more significantly to strengthening Indonesia’s national economy.
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