Oil Price and Cost of Hajj: The Evidence from Indonesia
Anwar Salahuddin & Winalda Ajaniara Perdana
Faculty of Economics and Business, Universitas Islam Negeri Syarif Hidayatullah & Department of Management, Faculty of Economics and Business, Universitas Indonesia
Abstract
This study investigates the impact of oil price on cost of hajj in Indonesia during period 1975-2018. Using the OPEC oil price as an indicator, this study found that oil price have positive impact on cost of hajj. As the oil price increase, the hajj cost may also increase. This is due to the major component of hajj cost is transportation cost which really sensitive to oil price changes.
Keywords: oil price, cost, hajj, Indonesia
Topic: Finance