Vice President: Cost Adjustment Needed to Maintain Subsidies
Haj costs that have to be borne by pilgrims have to be increased to ensure the sustainability of the subsidy given through the Hajj Financial Management Agency or BPKH.
By
CYPRIANUS ANTO SAPTOWALONO, NINA SUSILO
·6 minutes read
JAKARTA, KOMPAS — Vice President Ma'ruf Amin has warned that the subsidy given to lessen the haj costs that have to be paid by pilgrims had been too large. Therefore, haj costs that have to be borne by pilgrims have to be increased to ensure the sustainability of the subsidy given through the Hajj Financial Management Agency or BPKH.
"I think in the past, the subsidy of 59 percent given for haj costs was too big. That’s why investment returns of the haj funds [managed by BPKH] have taken up a lot,” Vice President Amin said in Jakarta on Wednesday.
The vice president made the statement when answering media questions regarding the Religious Affairs Ministry’s proposal to increase the haj costs this year to Rp 69.1 million (US$4,620) per person, an increase from Rp 39.8 million in 2022.
Earlier, during a hearing with the Commission VIII of the House of Representatives, Religious Affairs Minister Yaqut Cholil Qoumas estimated the haj costs (BPIH) for this year at Rp 98.8 million. Of the total, each pilgrim has to pay Rp 69.1 million or 70 percent, and the remaining 30 percent or Rp 29.7 million will be covered by part of the gains accumulated from investment of the haj funds, which are managed by BPKH.
The Rp 69.1 million consists of a roundtrip expense of Rp 33.9 million to Saudi Arabia, accommodation cost of Rp 18.8 million in Mecca, accommodation cost of Rp 5.6 million in Medina and food, drink and other expenses of Rp 4 million. Apart from that, the haj costs also include a visa fee of Rp 1.2 million and a Masyair service package (transportation in Arafah, Muzdalifah and Mina) of Rp 5.5 million.
Eroding haj funds
According to the vice president, it was feared that the large subsidy would erode the haj funds currently being managed by BPKH so that later on, it would be difficult to subsidize the cost of the haj. ”Therefore, there needs to be a price adjustment. Even if there is a subsidy, it should not be too large so that the sustainability of the subsidy is not disrupted," he said.
Regarding the magnitude of the adjustment in the cost of the pilgrimage, Vice President Amin said it was the authority of the Religious Affairs Ministry to propose it to the House. "Well, how much is the ideal adjustment, I think we have to wait. The Religious Affairs Minister has proposed the amount but I think, the DPR [House] will decide which one is more appropriate. Even if it has to be subsidized, the subsidy will not disrupt the subsidy for the future haj seasons," said Vice President Amin.
Vice President Amin also reiterated that the percentage of subsidies for haj costs, which amounted to 59 percent in 2022, endangered BPKH's finances, so it needed to be reconsidered. "I hope that later a more rational amount will be found that can be understood by the pilgrims who are going to haj, and also the sustainability of the subsidies will not be disrupted," he said.
Separately, when asked about the progress of the discussion regarding the increase in the cost of the pilgrimage, the Coordinating Human Development and Culture Minister Muhadjir Effendy said the talks on the haj costs were still underway. The proposal had just been submitted to the House. "That's a suggestion from the government, a temporary proposal. We'll see how the negotiation goes and the talks with the DPR [House]," Muhadjir said at the Presidential Palace Complex, Central Jakarta.
He also emphasized that haj costs had actually been far below the actual expenses. “So far the government has provided indirect subsidies. So, we hope the funds accumulated from contribution of prospective pilgrims in the waiting lists, now being managed by BPKH, can generate investment gains. But it is not yet maximal,” he said.
At the end of 2022, BPKH said that during the last five years, the haj costs had increased significantly. In fact, some of the cost components rose sharply. In 2019, for example, the actual haj costs amounted to Rp 70 million per person. However, the fee for registering and paying off the haj cost is still the same at Rp 35 million per person. In 2022, when the actual haj costs amounted to Rp 98 million, pilgrims only paid Rp 39 million per person (kompas.id, 15/9/2022).
Muhadjir said, if the increase in the cost of the pilgrimage was delayed, it would become even more burdensome. "So, every year the haj costs paid by pilgrims were far below the actual expenses. That's why we are trying to make adjustments so that the continuity of the pilgrimage can be guaranteed,” he said.
The founder of Indonesian Hajj and Umroh Watch (IHUW), TM Luthfi Yazid, in his written statement, on Wednesday, said that in Article 2 of Law Number 8 of 2019 concerning the Implementation of Hajj and Umrah Pilgrimage, it is stated that the implementation of haj and umrah, among other things, must be based on transparency and accountability. Therefore, he said, the handling of pilgrimage, including its costs, must be transparent and accountable.
“It means, there must also be a detailed explanation in determining the haj costs of Rp 69 million and for what components? This includes giving sufficient time to stakeholders, to the prospective pilgrims to consider or to provide input on the proposed increase in the cost of the pilgrimage," he said.
We don't want the haj funds and their investment gains for future pilgrims to be used entirely for this year’s pilgrims.
Luthfi asked the House not to approve the Religious Affairs Minister’s proposal to increase the haj costs. He suggested that the 2023 haj costs remain the same as previously, about Rp 35 million to Rp 37 million.
Previously, the Deputy Chairman of the House’s Commission VIII, Ace Hasan Syadzily, hoped the haj costs could be decided on 13 Feb. 2023. "In principle, we want the haj costs to be affordable to every pilgrim according to the principle of istitho'ah [capability], but still consider the financial sustainability and the fairness in the use of haj funds for all pilgrims. We don't want the haj funds and their investment gains for future pilgrims to be used entirely for this year’s pilgrims," said Ace.
This article was translated by Hendarsyah Tarmizi.