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KOMPAS/NASRU ALAM AZIZ

Hajj pilgrims thronged the courtyard of the Kaaba in the Masjidil Haram, Mecca, Saudi Arabia, to perform Tawaf on Saturday (3/8/2019).

JAKARTA, KOMPAS - The Ministry of Religion proposes the cost of organizing the Hajj pilgrimage or BPIH for 1445 H/2024 M to be an average of Rp 105 million. The BPIH proposal will still be discussed by the Work Committee of DPR Commission VIII in the next one to two months.

In the future, prospective hajj pilgrims will not pay the full BPIH (cost of hajj pilgrimage package). Referring to the average BPIH of 1444 H/2023 M, which is IDR 90,050,637.26, prospective pilgrims will pay an average of IDR 49,812,700.26 or 55.3 percent, and the rest will be covered by other sources.

In accordance with the mechanism for discussing the Hajj costs, the proposal for BPIH was presented by Minister of Religious Affairs Yaqut Cholil Qoumas to the DPR during a joint Working Meeting with Commission VIII in Jakarta on November 13, 2023. Note: No translation needed for "DPR", "BPIH" and "Komisi VIII" as they are Indonesian acronyms and forbidden words should not be translated.

There are several service components included in the proposed BPIH 2024, including flight costs, accommodation services, consumption services, transportation services, services at Arafah-Muzdalifah-Mina (Armuzna), services at embarkation or disembarkation, and living expenses.

ERWIN EDHI PRASETYA

Hajj pilgrims from the Special Region of Yogyakarta lined up to enter the departure hall at Muzdalifah Hall, Donohudan Hajj Dormitory, Boyolali, Central Java, on Monday (5/8/2019).

As quoted from the official website of the Ministry of Religious Affairs on Wednesday (15/11/2023), Special Staff to the Minister of Religious Affairs in the field of Media and Public Communication, Wibowo Prasetyo stated that Law Number 8 of 2019 regarding the Implementation of Hajj and Umrah regulates that BPIH is a certain amount of funds used for the operational implementation of hajj. Article 44 of the law states that BPIH comes from the cost of hajj travel that must be paid by pilgrims (bipih), state revenues and expenditures (APBN), benefit values, efficiency funds, and/or other legitimate sources based on legislation.

"So, the bipih that must be paid by prospective pilgrims is part of the BPIH. The Ministry of Religious Affairs has proposed a fee of IDR 105 million, but that doesn't necessarily mean that prospective pilgrims have to pay that amount," said Wibowo.

Also read: Expenses for Hajj Pilgrims Set at IDR 49.8 Million

Wibowo added that the Panja BPIH for the year 1445 H/2024 M is still discussing the initial proposal from the Ministry of Religious Affairs. Each component of the cost will be discussed and its price will be checked in the field. The Panja will eventually produce a version of BPIH that reflects the discussions and agreements, which will then be brought back to the Working Meeting of Commission VIII and the Ministry of Religious Affairs to be agreed upon as the BPIH for 2024.

The agreed-upon Hajj cost by the government and the DPR will then be conveyed to the President for approval through a Presidential Regulation. "The regulation will determine the amount of Hajj fees paid by prospective pilgrims and the cost of Hajj sourced from the benefits in accordance with the agreement between the government and the DPR," explained Wibowo.

Wibowo cited, during the determination of BPIH 1444 H/2023 M, the government proposed an average BPIH 1444 H of Rp 98,893,909.11. Kemenag and Commission VIII of the DPR then formed the BPIH Task Force to discuss it. The BPIH Task Force also reviewed service prices, both domestically and in Saudi Arabia.

Also read: Reasonability of Hajj Costs

In the work meeting on February 15, 2023, it was finally agreed that the average BPIH 1444 H/2023 M would be Rp 90,050,637.26, assuming a US dollar rate of Rp 15,150 and a Saudi Arabian riyal rate of Rp 4,040.

It has also been agreed that the pilgrimage cost paid by prospective pilgrims in 2023 will be on average IDR 49,812,700.26 (55.3% of the reference pilgrimage cost). Meanwhile, the reference pilgrimage cost amounting to an average of IDR 40,237,937 (44.7%) is derived from the value of benefits.

Separately, Yaqut said that there is a difference in the proposed Hajj cost scheme for 2024 compared to previous years. The government only proposed the amount of BPIH, no longer calculating the composition of the BPIH amount to be paid by prospective pilgrims and the value of benefits.

The Ministry of Religious Affairs proposes an amount of Rp 105 million, but that does not necessarily mean that the same amount has to be paid by prospective pilgrims.

"The proposed BPIH by the government will be further discussed in detail for each component by the BPIH task force. Once the BPIH has been agreed upon, the composition of the amount of BPIH paid by prospective pilgrims and the portion derived from the benefits value will be calculated," stated Yaqut.

Higher proposal

Director General of Hajj and Umrah Administration, Hilman Latief, explained that the proposed cost for Hajj pilgrimage in 2024, presented by the Government to the House of Representatives, is higher than the cost for Hajj pilgrimage in 2023. There are several factors that caused this, including the increase in exchange rates for both the US dollar and the Saudi riyal, and the addition of services.

"The Hajj cost for 2023 has been agreed upon with the assumption of an exchange rate of 1 US dollar to Rp 15,150 and 1 SAR to Rp 4,040. Meanwhile, the proposed Hajj cost for 2024 is prepared with the assumption of an exchange rate of 1 US dollar to Rp 16,000 and 1 SAR to Rp 4,266," said Hilman.

"If we check the exchange rate of the US dollar against the rupiah today, it is already at around Rp 15,700. Now, in the proposed BPIH, we use the assumption of Rp 16,000 because exchange rates are inherently very volatile. This is what will be discussed with financial experts in the Panja scheme to determine the most appropriate exchange rate based on what assumption?" he said.

KOMPAS/ADI PRINANTYO

Hajj pilgrims visited Jabal Rahmah in Arafah, Mecca, Saudi Arabia on Wednesday (12/7/2023) afternoon Saudi Arabia time.

According to Hilman, the difference in exchange rates has an impact on the increase in service costs that can be classified into three types. First, services with prices that remain the same as in 2023. The increase in the proposed BPIH 2024 occurs due to the rise in exchange rates.

"For example, salawat bus transportation. We propose that the cost of providing salawat bus transportation this year be the same as in 2023, amounting to 146 Saudi Arabian riyals. However, given the assumption of a different exchange rate, there will be an increase in the proposal," said Hilman.

Also read: Government and DPR Delay Determination of 2023 Hajj Fees

Secondly, the services that have increased in price compared to last year. The proposed increase is due to price hikes and exchange rate differences. For example, accommodations in Medina and Mecca. "In 2023, the average hotel rental in Medina is 1,373 Saudi riyals, and this year we propose 1,454 Saudi riyals. The same goes for Mecca, there has been an increase in proposals from the previous year," said Hilman.

Third, services with increased prices and volume. The proposed increase is due to differences in prices, volume, and exchange rates. For example, consumption in Mecca, which was agreed upon with the DPR Commission VIII for only 44 meals last year, could ultimately be adjusted to 66 meals.

"This year we proposed that the consumption service in Mecca be increased to 84 meals, with a breakdown of three meals a day for 28 days so there is a difference in volume. The price of consumption per meal compared to last year has also increased. The increase has been added due to differences in currency exchange rates," said Hilman.