Key insights and market outlook
Indonesia is poised to tap into a potentially lucrative market supplying food to Indonesian pilgrims performing Hajj and Umrah in Mecca, Saudi Arabia, worth an estimated Rp50-60 trillion. Coordinating Minister for Food Affairs, Zulkifli Hasan, highlighted that currently most food supplies come from other countries, missing out on significant economic opportunities. The initiative aims to not only capture this economic potential but also potentially reduce Hajj costs for Indonesian pilgrims by lowering food expenses in Mecca.
The Indonesian government is exploring opportunities to supply food to Indonesian pilgrims performing Hajj and Umrah in Mecca, Saudi Arabia, potentially worth Rp50-60 trillion. Coordinating Minister for Food Affairs, Zulkifli Hasan, revealed that this initiative could significantly benefit the country's economy while also reducing costs for pilgrims.
Currently, most food supplies for Indonesian pilgrims come from other countries, primarily neighboring Saudi Arabia. This means that Indonesia is missing out on a substantial economic opportunity. By participating in the food supply chain, Indonesia could retain this economic benefit domestically. The estimated value of this market - between Rp50-60 trillion - is substantial, considering it involves supplying food to approximately 221,000 Hajj pilgrims and 1.7 million Umrah pilgrims annually.
The initiative has dual benefits. Firstly, it creates a significant economic opportunity for Indonesian businesses involved in food production and export. Secondly, it could lead to a reduction in the overall cost of performing Hajj for Indonesian pilgrims. With food being a major expense during their stay in Mecca, Indonesian caterers could offer more competitive pricing, thereby lowering the financial burden on pilgrims. As Zulkifli Hasan noted, successful implementation could mean that the cost of Hajj "maybe could be reduced, or at least not increased."
While the ultimate goal is to supply all food requirements for Indonesian pilgrims, the minister indicated a phased approach, starting with what Indonesia is capable of supplying. This strategic move is expected to strengthen Indonesia's economic position while enhancing the religious pilgrimage experience for its citizens abroad.
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