Indonesia's Hajj Fund Agency Awaits Parliament's Decision on Financing Overhaul
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- The Indonesian Hajj Financial Management Agency (BPKH) awaits parliamentary discussions on a proposed shift in Hajj financing, aiming for 60% from the benefit fund and 40% from pilgrims.
- BPKH emphasizes that all funds belong to pilgrims, including those waiting, and any new scheme must be sustainable and equitable for both departing and future pilgrims.
- The agency supports the Ulama Council's view that pilgrim contributions should exceed benefit fund subsidies to ensure Sharia compliance and fairness.
The Indonesian Hajj Financial Management Agency (BPKH) is closely monitoring parliamentary deliberations on a proposed overhaul of Hajj financing. The plan suggests pilgrims cover 40% of the cost, with the remaining 60% drawn from the Hajj fund's benefits. This contrasts with the government's proposed 2027 Hajj operational cost of 107.34 million Indonesian rupiah.
The money of other pilgrims is not just for the pilgrims departing, but also for those who are waiting.
BPKH officials stress that the funds managed are entirely pilgrim contributions, including those of the 5.6 million individuals currently awaiting their pilgrimage. "The money of other pilgrims is not just for the pilgrims departing, but also for those who are waiting," stated Harry Alexander, a member of the BPKH Executive Board. Therefore, BPKH is deferring a decision until the DPR's Hajj Operational Cost Committee (Panja BPIH) concludes its discussions.
That is, (Hajj finances) can continue, but are fair to (pilgrims) departing and also fair to pilgrims who are waiting.
The agency champions a sustainable and equitable financial model for Hajj. Harry explained that a 60-40 split, where pilgrims pay less than the benefit fund covers, would be unfair to those still waiting. He cited a MUI fatwa suggesting pilgrim payments should exceed benefit subsidies, ideally not exceeding 50% subsidy, to maintain Sharia compliance and fairness.
At least don't let the subsidy exceed 50 percent, something like that. Because if not, it will not happen istitha'ah in terms of Sharia and justice.
BPKH hopes for consistent and ideally decreasing subsidy amounts for future pilgrims. Harry clarified that the agency has no equity or capital; all funds are pilgrim contributions. He urged a comprehensive view, emphasizing that the agency's goal is to ensure subsidies benefit current and future pilgrims equitably, with a long-term vision of reducing the final payment amount for all.
BPKH doesn't have equity, doesn't have capital. Because there is no capital, automatically there is no state capital injection money, right? So all the money is pilgrim money.
Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.