Indonesia, home to the world's largest Muslim population, has proposed a sharp increase in the cost of performing Hajj in 2027, reopening a difficult debate over how far the state should subsidise the pilgrimage. According to Independent Hajj Reporters, the Ministry of Religious Affairs has proposed setting the Hajj Pilgrimage Implementation Cost, known locally as BPIH, at IDR 107.34 million per pilgrim for the coming season, the equivalent of around 6,000 US dollars.
The figure represents an increase of roughly IDR 19.93 million compared with 2026. Officials say the rise reflects external pressures largely outside government control, but it has drawn warnings from Hajj oversight bodies about the long-term health of Indonesia's pilgrimage funds.
How the numbers break down
In 2026, the total BPIH stood at IDR 87.41 million per pilgrim. Of that, the individual covered 62 percent, or about IDR 54.19 million, while government assistance drawn from investment returns covered the remaining 38 percent, around IDR 33.22 million.
For 2027, the ministry has proposed a 60:40 composition, meaning the government would cover 60 percent of the cost through investment returns while the pilgrim pays 40 percent. Under that structure, the actual out-of-pocket cost for each pilgrim is estimated at around IDR 43 million, or roughly 2,400 US dollars, with approximately IDR 64 million per pilgrim pulled from the value of accumulated benefits.
The subsidy in Indonesia works differently from a conventional state handout. When a person signs up for Hajj, they pay an initial deposit of about IDR 25 million to join the waiting list. With around 5.5 million Indonesians currently on that list, the deposits form a large pool managed by the Hajj Financial Management Agency, or BPKH, which invests the funds in Sharia-compliant instruments such as state sukuk and Islamic banking deposits. Those investments generate annual returns of roughly IDR 10 trillion to IDR 12 trillion, which are then used to help pay departing pilgrims' bills.
What is driving the increase
Minister of Hajj and Umrah Mochamad Irfan Yusuf attributed the proposed hike to shifting rupiah exchange rate assumptions, rising aviation costs, higher accommodation expenses in Mecca and Madinah, ground transportation and healthcare services. A fragile rupiah and elevated global oil prices weigh heavily on the cost of overseas hospitality and air travel.
A further factor comes from Saudi Arabia itself. The minister noted that changes to Masyair services have pushed base costs upward. Saudi authorities have eliminated the entry-level Masyair Service Package D, simplifying the offering into three higher-tier categories. Because the cheapest option has been removed, the minimum service cost that every pilgrim must pay has effectively risen. This change affects pilgrims from all countries, not only Indonesia, and may filter into package prices worldwide.
The minister stressed that the figures remain a proposal for now, pending detailed discussions with the Working Committee of Commission VIII of the House of Representatives.
Warnings over fund sustainability
The larger subsidy has prompted concern that it could strain the liquidity of BPKH, which must sustain the needs of millions of waitlisted pilgrims still awaiting departure. The chairman of the National Hajj Commission, Mustolih Siradj, warned of severe consequences if the government fails to run careful long-term calculations.
Assuming around 203,000 regular pilgrims depart in 2027, Siradj estimated that a subsidy of IDR 64 million per person would require approximately IDR 13 trillion, or about 1 billion US dollars, in total funding. While the policy lowers immediate costs for departing pilgrims, he cautioned that it shrinks the distribution space of investment returns available to the millions still on the waiting list, where waits can stretch from 15 to more than 40 years. Indonesia's Hajj quota for 2026 was set at 221,000 pilgrims.
Practical guidance for pilgrims
Indonesian pilgrims preparing for 2027 should treat the announced figures as a proposal rather than a final price, since the amounts still require parliamentary approval and may change. Those already on the waiting list should keep their deposits and contact details current with their local religious affairs office to avoid losing their place. Pilgrims should also budget for the possibility that the out-of-pocket share could shift during negotiations. More broadly, pilgrims from other countries should note that the removal of the lowest Masyair package may raise the base cost of Hajj packages this season, and are advised to confirm exactly which service tier their operator has booked before paying.