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Rising Costs: Trip to Saudi Arabia Gets Pricier as Rupiah Slides
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Traveling to the holy lands of Saudi Arabia is becoming more expensive, thanks to the slipping value of the rupiah against the Saudi riyal. According to Refinitiv data, the rupiah has weakened to Rp4.321 against the riyal, a notable drop from Rp4.030 in early October 2024. Year-to-date, the rupiah has depreciated by 5.26% against the Saudi currency.
The weakening rupiah is making visits to Saudi Arabia, whether for leisure or pilgrimage, more costly. This is due to the rising prices of goods and services in the kingdom. As seen in the interactive chart [insert chart], the riyal has been strengthening against the rupiah over time, making excursions to the Middle Eastern country more expensive.
For instance, a quick glance at accommodation costs reveals a steep increase. Budget stays in hostels might set you back Rp1.279,000 (around 296 SAR), while mid-range hotels charge an average of Rp2.558,000 (about 592 SAR) per night. A luxurious hotel stay, meanwhile, can cost upwards of Rp4.321,000 (1,000 SAR).
Transportation fares aren’t spared from the price hike. Public transport tickets start at Rp17.284 (around 4 SAR), while initializing a taxi ride costs Rp43.210 (about 10 SAR). The price for each additional kilometer is Rp26.358 (around 6,1 SAR).
The appreciation of the riyal also impacts Hajj expenses, making the pilgrimage pricier.
In light of these developments, Minister of Religious Affairs Nasaruddin Umar assured that the quality of services remains high even as the government strives to make the pilgrimage cheaper. Speaking after a meeting at the Presidential Palace with Minister of State Secretary Prasetyo Hadi and Secretary of the Cabinet Teddy Indra Wijaya, Umar emphasized that cost-effectiveness shouldn’t compromise service quality.
"Murahnya (cheaper) is not about lowering the service quality, but rather about ensuring efficiency and effectiveness," said the minister, who was accompanied by Deputy Minister of Religious Affairs Romo Syafi’i.
CNBC Indonesia Research
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