Enhancing Economic Sovereignty of Indonesian Hajj

Each year, over 200,000 Indonesian pilgrims arrive in Saudi Arabia to perform the Hajj, complemented by over 1.5 million participating in Umrah. This makes Indonesian Muslims the largest hajj-performing community globally, creating a significant economic ecosystem around religious practices, including consumption, accommodation, and transportation. In 2024, as cited by Bahana Sekuritas and CNBC, the average costs for Indonesian hajj pilgrims exceeded 108 million Rupiah. Within this framework, the Indonesian Hajj Financial Management Agency (BPKH), through its subsidiary BPKH Limited, aims to serve as a major investment instrument within this ecosystem. Supported by the Ministry of Religious Affairs, the Ministry of Foreign Affairs, and the Ministry of Finance, BPKH Limited was established in 2023 to not only escalate purchasing capacity but also to secure a strategic position within the value chain economy. However, BPKH Limited, as noted by M. Arief Mufraini, a member of BPKH’s board, still acts largely as a facilitator and requires regulatory strengthening to fully implement its designed role.