JAKARTA -- The Ministry of Religious Affairs proposes the cost of organizing Hajj worship (BPIH) 1445 H/2024 M with provincial average value of Rp 105 million. According to the mechanism for discussing the cost of Hajj, this proposal was presented by the Minister of Religious Affairs Yaqut Cholil Qoumas to the DPR during the Joint Working Meeting of Commission VIII in Jakarta, Monday (13/11/2023).
This working meeting focused on the preliminary talks of BPIH and the establishment of the Panja (Working Committee) of BPIH in 1445 H/2024 M. The meeting chaired by the Chairman of the VIII Commission of the Parliament Ashabul Kahfi agreed on Moekhlas Sidik as the chairman of the panel who will lead a series of meetings to discuss the cost of Hajj 2024.
“The government yesterday held a working meeting with Commission VIII to discuss the cost of Hajj. The cycle is indeed the government putting forward the Hajj fee proposal. We propose a BPIH of Rp 105 million per worshipper. This proposal will be discussed by the panja to later agree on the cost of Hajj in 2024,” Yaqut said in a written message received by Republika on Tuesday (14/11/2023).
Law No. 8 of 2019 on the Organization of Hajj and Umrah Worship provides that BPIH is a certain amount of funds used for the activities of conducting Hajj worship. Article 44 states that BPIH is sourced from Hajj travel expenses that worshippers must pay (bipih), State Revenue and Expenditure Budgets, benefit bars, efficiency funds, and other sources that are legitimate under the provisions of legislation. So, this is still a preliminary proposal that will be discussed in the panja. If the prices in the field have been studied and examined, they are only agreed.
“So, this is still a preliminary proposal that will be discussed in the panja. If the prices in the field have been studied and examined, it is only agreed and determined how much the pilgrims pay the hajj (bipih) and how much is deducted from the value of the benefits of the initial deposit of the worshipper,” Menag said.
According to Menag, there is a difference in the scheme of proposing the cost of Hajj 2024 with previous years. In a joint raker with Parliament yesterday, the government proposed the size of its BPIH alone. The government no longer calculates the composition of the amount of bipih that worshippers will pay and the value of benefits.
“The BPIH proposed by this government will next be discussed in more detail each of its components by Panja BPIH. Once the BPIH is agreed, the composition of what amount of bipih the worshipers pay and how much is sourced from the value of the benefits will be calculated,” Yaqut said.
In 2023, the government proposed BPIH with an average of Rp 98,893,909. After a series of discussions through Panja BPIH and a price review, it was finally agreed that the 2023 BPIH will average Rp 90.050,637, assuming a rate of 1 US dollar of Rp 15,150 and 1 Saudi riyal of Rp 4,040. Furthermore, it was agreed that the bipih fee paid by worshippers in 2023 amounted to an average of Rp 49,812,700 (55.3 percent), while those derived from the value of benefits amounted to an average of Rp 40,237,937 (44.7 percent).
Director General of Hajj and Umrah Organization of the Ministry of Religious Affairs (Dirjen PHU Kemenag) Hilman Latief explained that the proposed cost of conducting Hajj worship (BPIH) 2024 submitted by the government to DPR RI is higher than the cost of Hajj 2023. According to him, there are a number of factors that are responsible, among others, the increase in the exchange rate of both the dollar and the riyal and the addition of services.
“The cost of Hajj 2023 is agreed upon assuming a rate of 1 US dollar of Rp 15,150 and 1 Saudi riyal of Rp 4,040. Meanwhile, the proposed cost of Hajj 2024 was drawn up assuming the rate of 1 US dollar of Rp 16,000 and 1 Saudi Arabia of Rp 4,266,” Hilman said in a written message received by Republika on Tuesday (14/11/2023).
Hilman said that if you check the exchange rate of the dollar against the rupiah per day, it is already in the range of Rp 15,700. In BPIH's proposal, the Ministry of Commerce uses the assumption of Rp 16,000 because the exchange rate is very volatile. It is this that in the scheme of the working committee (panja) will be discussed together with the financial expert to determine the most appropriate rate on certain assumptions.
He explained that this difference in exchange rates has an impact on the increase in the cost of services that can be classified into three types. First, services whose price is fixed or equal to 2023. The increase in the proposed BPIH 2024 occurred due to a difference in exchange rates.
“For example, prayer bus transportation. We propose the cost of providing Shalawat bus transportation this year equal to 2023, amounting to 146 riyals. But, the assumption of the value of the exchange rate is different so there is an increase in the proposal,” Hilman said.
Secondly, there are services whose price is indeed higher than last year. The proposed increase comes due to price increases and exchange rate differentials. For example, accommodation in Medina and Makkah. “In 2023, hotel rents in Medina average 1,373 Saudi riyals, this year we propose 1,454 Saudi riyals. Likewise in Makkah, there was an increase in proposals from the previous year,” Hilman said.
Next, services whose price goes up and the volume increases. The proposed increase occurred due to price differentials, volume differentials, and exchange rate differentials. For example, consumption in Makkah, last year agreed with the VIII Parliament's Commission of only 44 meals, although it could eventually be adjusted to 66 meals.
“This year we propose the consumption service in Makkah to be 84 meals, with a breakdown of three meals over 28 days. So that there is a difference in volume. The price of consumption per meal in the last year compared to this year also increased. The increase increases with the difference in exchange rates,” Hilman said.
Hilman confirmed that the BPIH 2024 proposal will still be discussed together with a panel of government and Parliament members. Panja will conduct a series of meetings, including meetings discussing the most ideal exchange rate assumptions. Panja will also carry out price checks for services, both domestically and in Saudi Arabia.
There are a number of service components in the BPIH 2024 proposal, namely the cost of flights, accommodation services, consumption services, transportation services, services in Arafat, Muzdalifah, Mina (Armuzna), protection, services at embarkation or disembarkation, immigration services, insurance premiums and other protections, travel documents, living expenses, training of pilgrims in the homeland and in Saudi Arabia, general services in the country and in Saudi Arabia, as well as the management of BPIH.
Hilman estimates that the discussion process at the BPIH office will take about a month or two. Regarding the predicted cost of Hajj 2024, it is still waiting for the results of the panja work to be brought to the VIII Working Meeting of the DPR Commission. Later, it will also be agreed how much the Hajj must pay and how much is derived from the value of the benefits.
“Last year, worshippers paid an average of Rp 49,812,700. How much is paid this year, hopefully the government and Parliament can formulate the best for Indonesian pilgrims,” Hilman said
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