Rising Haj Costs: Fuel Prices and Rupiah Upsurge Impact Indonesia

Indonesia is bracing for a substantial increase in haj pilgrimage expenditures for 2026, primarily due to skyrocketing jet fuel rates and a depreciating rupiah affecting the budget significantly.

According to lawmakers and analysts, the impending additional expense may reach as high as Rp 1 trillion, largely influenced by the escalating costs of aviation fuel and currency depreciation, both tied to ongoing tensions in the Middle East.

Economists are advising the government to intervene, proposing discussions with airlines and service providers in Saudi Arabia to alleviate operational costs.

Experts caution against excessive reliance on funds managed by the Haj Financial Management Agency, sourced from current and future pilgrims, as this could lead to long-term financial difficulties.

The price of jet fuel has surged nearly 70 percent, with the rupiah dropping to over Rp 17,000 against the U.S. dollar, which will likely affect airfare along with accommodation, food, transport, and insurance costs.

Government officials are deliberating subsidy strategies to lessen the financial strain on pilgrims, potentially including aid for local airfare and essential services.

Despite the rising costs in the haj domain, the umrah industry—managed by private operators—continues to thrive, maintaining steady demand even as consumers and businesses face soaring expenses.