Weak rupiah hits pilgrimage plans of thousands of Indonesians

It's the time of year when Jakarta's international airport is packed with Muslim pilgrims waiting for flights to the holy city of Mecca.

The bustle belies something different about the Haj pilgrimage this year from Indonesia, which has more than 200 million Muslims, the world's biggest community.

Indonesia gets the largest annual Haj quota from Saudi Arabia - 168,000 places - and stiff competition guarantees all will be filled. But this year, about 3,500 Indonesians relinquished places and postponed their trip, chiefly because of the rupiah's dive to 17-year lows against the dollar.

In 2014, only 724 people postponed pilgrimages, according to Indonesia's Religious Affairs Ministry.

The rupiah has dropped 15 percent this year, and 32 percent since mid-2013.

"People are hoping for a cheaper dollar next year," said Ali Muchtar Harahap, president-director of Haj tour operator PT Jamila Antar Nusa Wisata.

Many Indonesians save for decades to afford a trip to fulfil one of the five pillars of Islam. This year’s cost of around $3,200 for a regular, government-run Haj tour is almost as much as the country's per-capita annual income.

Pilgrims may postpone just once, for one year. Any more, and they go to the end of the queue, perhaps missing their chance of ever getting to Mecca.

CHILDREN CHIP IN

When Muhammad Thamrin learnt that he had a spot on the pilgrimage, the 76-year-old was thrilled. But he was shocked when he saw the bill.

"I had to pay almost double for the second instalment," said the wheelchair-bound former civil servant, while waiting for his flight. "It rose extraordinarily with the rupiah this weak."

Thamrin's six children chipped in so that he could afford to visit Islam's most sacred site, but not all of Indonesia's would-be pilgrims have been so blessed.

In Indonesia, the Haj business is worth at least $600 million a year, based on the cost of tours and the numbers going on them.

Premium packages from private operators offering pilgrims more comfortable digs closer to Mecca's Grand Mosque go for upwards of $8,000.

In Indonesia, Haj packages for this year were quoted in dollars. In rupiah terms, they have gotten steadily more pricey as the currency has been hit by factors hurting all emerging markets, including fear of higher interest rates in the United States, and China's devaluation of the yuan last month.

There have also been domestic factors such as a high inflation rate of around 7 percent. The rupiah is Asia's second worst performing currency this year, after Malaysia's ringgit.

Some pilgrims are unfazed by the sinking rupiah and refuse to scrimp when it comes to the Haj, which all Muslims are expected to perform at least once in their lifetime if they are able.

"We shouldn't be so calculating," says Tati, 59, wiping away tears of happiness as she prepared for her flight to Mecca. "All our fortune and wealth come from Allah."