Post by : Shakul

Indonesia is facing a significant rise in haj pilgrimage costs for 2026, as soaring jet fuel prices and a weakening rupiah put pressure on the overall budget.

Lawmakers and analysts estimate that the additional burden could reach up to Rp 1 trillion, driven largely by rising aviation fuel costs and currency depreciation linked to tensions in the Middle East.

Economists have urged the government to step in and manage the situation, suggesting negotiations with airlines and service providers in Saudi Arabia to reduce operational expenses.

Experts also warned against relying heavily on funds managed by the Haj Financial Management Agency, which are contributed by current and future pilgrims, as this could create long-term financial strain.

The surge in jet fuel prices, reportedly increasing by around 70 percent, along with the rupiah weakening beyond Rp 17,000 against the U.S. dollar, is expected to impact not only airfare but also accommodation, food, transport, and insurance costs.

Government officials are now considering subsidy measures to ease the burden on pilgrims, including support for domestic airfare costs and other essential services.

Despite rising costs in the haj sector, the umrah industry—run by private operators—continues to show resilience, with steady demand even as consumers and businesses absorb higher expenses.

#Asia News #Indonesia News #Economy #Business