Analyzing The Composition Of Hajj Fees

JAKARTA – The Indonesian Muslim community was very happy when the 2023 Hajj quota returned to 221 thousand pilgrims, the same number as the 2017-2019 period, before the COVID-19 pandemic hit. There are no more age restrictions. Pilgrims over the age of 65 also have the opportunity to perform Hajj this year.

Unfortunately, the excitement was immediately dashed by the discourse of the Ministry of Religion that it would increase the cost of going on hajj by around 43 percent this year, from around IDR 39 million to around IDR 69 million.

"I have never heard of the people's burden being reduced. Lately, the people's burden has become increasingly heavy, starting from increasing taxes, increasing cooking oil, increasing rice, increasing fuel, to increasing the cost of Hajj...," tweeted Andi Darwis on January 23, 2023.

"Recently there is good news that the 2023 hajj quota is 221 thousand pilgrims. The government has proposed that the ONH fee be increased to 69 million per person," tweeted another Twitter user.

The Director General of Hajj and Umrah Management (PHU) at the Ministry of Religion, Hilman Latief, even emphasized that if the congregation cannot pay off within the allotted time, their position will be replaced.

"If someone resigns, then someone will take a replacement," said Hilman at the Borobudur Hotel, Central Jakarta on January 24.

Indeed, many have predicted this increase, but the majority did not expect that the percentage increase could almost double from around IDR 39 million in 2022 to around IDR 69 million proposed in 2023. In fact, the Ministry of Hajj and Umrah of Saudi Arabia has announced a reduction in the cost of the 2023 Hajj service package. up to 30 percent.

However, according to Hilman, it is only for domestic residents. The Hajj service package in question is a 4-day service from Mecca to Arafah or what is commonly called Masyair. Previously, the price was opened starting from IDR 22 million, but this year it was only around IDR 16 million.

The public must also understand that the increase in the cost of Hajj is an unavoidable consequence. This is because, said the Head of the Regular Hajj Service Working Team Muhammad Nasihuddin, the financing of organizing the hajj is not just Masyair service fees, but there are also other components that are currently experiencing rising costs, such as accommodation, transportation, consumption, immigration documents, as well as general service fees .

"Just as an example is the cost of accommodation in hotels in Saudi Arabia, which since the end of 2022 has crept up to 300 percent. Then, the increase in air transportation costs and the depreciation of the rupiah against the United States dollar and the Saudi Arabian Riyal (SAR).

"According to information, last year's currency conversion price was only IDR 14,425 per dollar and IDR 3,846 per riyal, while in 2023 it is assumed to reach around IDR 15,300 per dollar and IDR 4,080 per riyal," said the Head of the Regular Hajj Service Team. Muhammad Nasihuddin in his article, 'Measuring the Fairness of the 2023 Hajj Fee' on the official website of the Ministry of Religion.

Not to mention the policy of the Saudi Arabian government which continues to impose a Value Added Tax (VAT) of up to 15 percent for commodity goods. The Saudi Arabian tax authority, the General Authority of Zakat and Tax (GAZT) stipulates zakat as a kind of personal income tax (PPh) of 2.5 percent and corporate income tax reaching 20 percent.

"Then other costs, such as training costs and congregation protection costs," said Nasihuddin

Composition of Hajj Fees

So far, the composition of the costs of the hajj uses two components, namely the Hajj Travel Expenses (Bipih) which are borne by the congregation and the use of the value of benefits derived from the results of the management of the Hajj funds by the Hajj Financial Management Agency (BPKH).

The percentage, according to Hilman, varies from year to year. This can be seen from BPKH's exposure data for the last 12 years:

1. In 2010 the cost of Hajj was IDR 34.5 million: Bipih IDR 30.05 million (87 percent) and the benefit value was IDR 4.45 million (13 percent)
2. In 2011 the cost of Hajj was IDR 39.34 million: Bipih IDR 32.04 million (81 percent) and the benefit value was 7.31 million (19 percent)
3. In 2012 the cost of Hajj was IDR 45.93 million: Bipih 37.16 million (81 percent) and the benefit value was 8.77 million (19 percent)
4. In 2013 the cost of Hajj was IDR 57.11 million: Bipih 43 million (75 percent) and the value of benefits was 14.11 million (25 percent)
5. In 2014 the cost of Hajj was IDR 59.27 million: Bipih 40.03 million (68 percent) and the benefit value was IDR 19.24 million (32 percent)
6. In 2015 the cost of Hajj was IDR 61.56 million: Bipih 37.49 million (61 percent) and the benefit value was IDR 24.07 million (39 percent)
7. In 2016 the cost of Hajj was IDR 60 million: Bipih 34.60 million (58 percent) and the value of benefits was IDR 25.40 million (42 percent)
8. In 2017 the cost of Hajj was IDR 61.79 million: Bipih 34.89 million (56 percent) and the benefit value was IDR 26.90 million (44 percent)
9. In 2018 the cost of Hajj was IDR 68.96 million: Bipih 35.24 million (51 percent) and the benefit value was IDR 33.72 million (49 percent)
10. In 2019 the cost of Hajj is IDR 69.16 million: Bipih is 35.24 million (51 percent) and the benefit value is IDR 33.92 million (49 percent)
11. In 2022 the cost of Hajj is IDR 97.79 million: Bipih is 39.89 million (41 percent) and the value of benefits is IDR 57.91 million (59 percent)

Whereas for 2023, the Minister of Religion Yaqut Cholil Qoumas in a working meeting with Commission VIII DPR on January 19 proposed that the average Hajj Cost (BPIH) would reach IDR 98.89 million, an increase of around IDR 500 thousand from the previous year.

However, with a different composition. Bipih percentage is increased to 70 percent or IDR 69.19 million which is used for:

Flight costs from embarkation to Saudi Arabia (PP) IDR 33,979,784

Accommodation in Mecca IDR 18,768,000

Accommodation in Medina IDR 5,601,840

Cost of living IDR 4,080,000

Visa IDR 1,224,000

Public Services IDR 5,540,109

Meanwhile, the use of the benefit value is only 30 percent or around IDR 29.7 million. Because, if you continue to use the percentage composition in 2022, the value of the benefits will gradually erode and are expected to run out within the next 5-10 years.

Thus, the costs of organizing the hajj will be purely sourced from the congregation. In fact, said Hilman, "There are still 5 million pilgrims waiting in line for departure, they are also entitled to the benefit value of the initial deposit."

Currently, the hajj cost formula is still in the form of a proposal to be discussed with the DPR's Commission VIII. Of course, this has gone through an in-depth study taking into account the principles of fairness and sustainability of Hajj funds.

"We'll just wait for the agreement, hopefully produce an ideal composition," added Hilman.