Avtur Price Increases, Indef Suggests More Adaptive Hajj Fee Reform

JAKARTA - The Institute for Development of Economics and Finance (Indef) suggests that the government reformulate the structure of Hajj costs so that it is more adaptive to global fluctuations, including rising jet fuel prices.

Head of the Indef Center for Macroeconomics and Finance M Rizal Taufikurahman argues that the increase in jet fuel prices needs to be responded to with a reform approach to a more pressure-resistant system, rather than looking for budget space to cover the shortfall.

"Without this shift, policies that appear pro-jamaah in the short term risk burdening the fiscal and being unsustainable in the long term," said Rizal as quoted by ANTARA, Friday, April 17.

In order for the cost of the hajj to be more resistant, Rizal recommends that the government encourage long-term contracts for avtur and airlines.

This method is believed to be able to reduce price volatility, open competition for service providers so that costs are more efficient, and optimize the Hajj Fund as a professional and transparent buffer.

Rizal also reminded the government to be more careful in deciding on the use of the State Budget (APBN) to cover the shortfall in spending due to economic volatility.

The government previously conveyed plans to patch an additional budget of Rp1.77 trillion for the cost of the Hajj plane using the state budget.

According to Rizal, the current state budget is facing simultaneous pressure from energy subsidies that are sensitive to oil prices, a slowdown in revenue, and increased social spending needs.

Therefore, even if the government carries out budget efficiency, funds need to be directed to support the needs of productive spending and not just a relabeling of the budget.

"The increase in jet fuel is not a one-time event, but part of the structural global energy volatility. If every direct cost shock is covered by the state budget, the state implicitly takes over the operational risks that should be managed within the Hajj financing system itself," he said.

Previously, President Prabowo Subianto announced that the cost per Indonesian Hajj candidate in 2026 would remain down by Rp2 million, even though the price of avtur had increased.

In response to the increase in world jet fuel prices which have an impact on the increase in flight fares, the government plans to provide financing support for 220 thousand prospective pilgrims affected by Rp. 1.77 trillion.

Finance Minister Purbaya Yudhi Sadewa when confirmed by reporters at the Presidential Palace Complex, Jakarta, Wednesday (8/4), said the additional budget would come from the state budget reserve, which is the result of efficiency based on calculations for one year.

The results of the efficiency, said Purbaya, can be used at the posts that need it, one of which is for the additional cost of the Hajj aircraft which has increased due to the surge in jet fuel prices.

With this budget, the government will not impose additional fees on Hajj pilgrims.