Influenced By Rupiah Exchange Rate, Garuda Boss Predicts 2024 Hajj Flight Fee To Increase 4.7 Percent

Garuda Indonesia (Photo: dock. Antara)

JAKARTA - President Director of Garuda Indonesia Irfan Setiaputra revealed the calculations of the components of the cost of organizing the pilgrimage (BPIH) for airlines. Irfan predicts there will be an increase of 4.7 percent from before.

Irfan said the increase refers to the assumption of shifting prices from a number of price-forming components. Mainly related to the exchange rate or the rupiah exchange rate against the United States (US) dollar.

If the rupiah exchange rate touches the level of IDR 16,000 per US dollar, continued Irfan, there will be an increase in the cost of Hajj flights by around 4.7 percent.

However, Irfan said there had been no final decision regarding the increase in the cost of this flight. He said, if there is a change in the course of the discussion, then it can also be ascertained that the numbers will also change.

"Indeed, if we use an exchange rate of Rp. 16,000, there will be an increase of 4.7 percent compared to the price per congregation last year. This is still temporary. We are still waiting. This means that once this goes down, the components will also change," he said when met at the DPR Building, Parliament Complex, Jakarta, Wednesday, November 15.

Based on Irfan's presentation in a meeting with Commission VIII of the DPR, the fuel cost for aircraft needs was recorded to contribute 41.98 percent of all costs. Meanwhile, the aircraft rental fee is 37.28 percent. The cost of renting this aircraft depends on the exchange rate.

"But what is clear is that for other components we don't increase. The problem is that our foreign exchange components at our prices are quite large, indeed 70 percent," he said.

Furthermore, Irfan admitted that it would be open if later the exchange rate decided to set the 2024 hajj fee changed or even decreased. He emphasized that the prediction of this increase refers to the exchange rate set at IDR 16,000 per US dollar.

"This is the exchange rate that comes in, no one knows. But again, if later the DPR and Departeman of Religion decide 'no, we don't use an exchange rate of Rp. 15,500 or Rp. 14,000', we will ask about the rationalization later. Because there are numbers, there are predictions," he said.

Meanwhile, related to aviation fuel, Irfan said there has been no change in the reference for the purchase price of avtur which will be used during the 2024 Hajj period. Where the estimated fuel price is at 93 cents per liter.

"Last year was 93 cents. We also make sure that we convey this plan to the Ministry of Religion that we will use a basis of 93 (cent per liter)," he explained.