Prabowo Calls for Hajj Cost Reduction, IPB University’s Sharia Economist Offers Strategic Solutions
Responding to President Prabowo Subianto’s request to lower the cost of Hajj, IPB University Sharia Economics Expert, Dr Irfan Syauqi Beik, offered several strategies that can be done.
In an interview on CNN Indonesia (5/7), Dr Irfan, who is also the Chairman of the Faculty of Economics and Management (FEM) of IPB University, said that Indonesia’s hajj cost is actually already cheaper than other countries such as Malaysia.
“Compared to Malaysia, the cost of Hajj in Indonesia is already cheaper by around 34-35 percent. This year, Malaysian pilgrims pay around Rp130 million, while Indonesian pilgrims pay around Rp89 million,” Dr Irfan explained.
However, he emphasized that cost reduction is still possible if efficiency strategies and financial management of the Hajj are thoroughly addressed.
To reduce the cost of hajj, he said, a number of important variables must be considered. Among them are efficiency in organizing the Hajj, including the ideal ratio between the number of officers and pilgrims, as well as the procurement of food and beverages that can be substituted with domestic products.
Furthermore, Dr Irfan highlighted the importance of optimizing the management of Hajj funds by the Hajj Financial Management Agency (BPKH). Regardless of the official cost of hajj, the most important thing according to him is the amount that must be paid by the congregation, because the rest can be subsidized from the management of these funds.
“BPKH must be more courageous in investing directly in real sectors that support the Hajj ecosystem such as lodging and transportation. The return from the real sector is high, although with greater risk,” he added.
He also assessed that the structure of BPKH needs to be reformed. “Currently, BPKH is defined as a non-profit entity. But it should be like a sharia entity that, although profit oriented, is still trustworthy, and flexible to invest,” he said.
The lecturer of the Department of Sharia Economics at IPB University also suggested that Indonesia follow the example of Tabung Haji Malaysia, which has succeeded in subsidizing up to 55 percent of the cost of Hajj. This step was taken through a business ecosystem that includes more than 30 companies, including in strategic sectors such as oil palm. In fact, he said, some of Tabung Haji Malaysia’s palm oil plantations are in Indonesia, with brands such as TH Plantation.
He revealed, although the number of Malaysian pilgrims is only one-tenth of Indonesia, the benefits obtained are very significant due to efficiency and strong governance. In fact, the funds managed by BPKH are relatively larger than Tabung Haji Malaysia.
“If the subsidy can be increased to 70 percent from the results of optimal hajj financial management, the fees paid by pilgrims can be much lighter,” said Dr Irfan.
However, he also emphasized that efficiency alone is not enough without transparent, accountable, and impactful financial management. This will not be achieved if the legal and institutional framework of BPKH is not revised. He gave an example of BPKH’s limitations in providing risk reserves due to its status as a non-profit entity.
Coordination between authorities is also crucial. This year is the last year for the Ministry of Religious Affairs to organize the Hajj before it is handed over to the Hajj Organizing Agency (BPH). Therefore, Dr Irfan said the synergy between BPH and BPKH is very important so that there is no miscommunication or overlap in the planning and implementation of hajj.
“Finally, the development of the halal sector, especially in the field of food and beverages, needs to be intensified in order to penetrate the Saudi Arabian and Middle Eastern markets, with the support of the Halal Product Guarantee Agency (BPJPH) and the Ministry of Industry,” he concluded. (Fj) (IAAS/PRP)
