Indonesia affirms tax alignment with Islamic principles and Hajj subsidies

The Indonesian Directorate General of Taxes (DJP) has affirmed that national taxation does not conflict with Islamic teachings. Director General Bimo Wijayanto stated that taxes serve as a form of collective contribution to fund public facilities, including schools, hospitals, social protection, and infrastructure, thereby promoting the common good and public welfare.

In a related application of tax revenue, the Indonesian government is preparing a subsidy of approximately US$180 (roughly Rp3.24 million) per pilgrim for the upcoming Hajj season. This subsidy, intended for 221,000 pilgrims, is expected to total approximately Rp716 billion. Deputy Finance Minister Nurkholisoh Ibnu Aman noted that these funds are derived from collected taxes to help alleviate the financial burden on families facing rising Hajj costs.

For the 2027 Hajj season, the Hajj Travel Cost (BPIH) has been set at Rp98.46 million per pilgrim. After accounting for initial deposits and benefit balances, the government subsidy aims to reduce the remaining direct cost (Bipih) for pilgrims to an average of Rp23.24 million, down from the Rp25 million required in 2026.