Boundary Spanning as a Strategic Capability in Orchestrating the Hajj and Umrah Ecosystem
The Government of the Republic of Indonesia has established a body mandated by Law Number 34 of 2014 to manage hajj funds, namely the Hajj Financial Management Agency (BPKH). Officially operating since 2017, BPKH’s role has developed not only as a manager of placement and investment portfolios, but also as a connector of diverse interests that at times hold differing perspectives.
BPKH is required to deliver increasingly optimal returns, scale up economic benefits, keep hajj funds safe and liquid, manage its placement and investment portfolio according to a low to low-to-moderate risk profile, keep hajj costs increasingly rational, improve the quality of hajj services, guarantee the sustainability of hajj funds, and ensure that business decisions remain accountable.
These conditions place BPKH as a boundary spanning organisation (BSO) at the intersection of complex interests. This position illustrates BPKH’s role in coordinating, collaborating, integrating and orchestrating various resources, and in creating added value by enhancing and optimising the benefits of hajj funds through various strategic partnerships, acquisitions and financing (Ariwibowo, 2025).
At roughly eight years of age, BPKH now has two subsidiaries: PT Bank Muamalat Indonesia Tbk (BMI), located in Indonesia with a branch overseas in Kuala Lumpur, Malaysia, and Syarikah BPKH Limited (BPKH Limited), located in Mecca, the Kingdom of Saudi Arabia. These two subsidiaries operate in different sectors—BMI in Islamic financial services, while BPKH Limited is in the real sector.
Together with their parent, BPKH, all three are interrelated in developing the hajj and umrah economic ecosystem. Moreover, like BPKH, BMI and BPKH Limited also occupy positions that bring together various related stakeholders.
BPKH manages hajj funds with its primary strategic investment direction in the hajj and umrah ecosystem; BMI provides transaction services, data, office networks and experience in the Islamic finance industry; while BPKH Limited provides market access, supply chains, business networks and execution capability in Saudi Arabia.
Consequently, BPKH, BMI and BPKH Limited (BPKH Holding) are not merely three affiliated entities, but together they span boundaries beyond organisational, industrial, business model, market, geographical and jurisdictional limits.
The BSO concept is carried out by boundary spanners, defined as organisations, institutions, units, groups or individuals operating at organisational boundaries to connect the organisation with its environment; proactively conducting environmental scanning and gathering information; facilitating information exchange; building coordination both within and between organisations; building collaboration horizontally and vertically; building common perspectives across organisations; and securing support from parties across organisational boundaries.
The implementation of this BSO concept implicitly illustrates that BPKH Holding does not hold a structurally higher position, nor does it have greater authority than the majority of stakeholders, as each has a different mandate applicable within its own domain.
Therefore, BPKH Holding as a BSO will naturally face role dynamics, limitations of authority, and function as an agent of change in a non-hierarchical environment (Organ, 1971).
The boundary spanner role is multilevel because it is carried out at organisational, unit or group, and individual scales. At the organisational level within BPKH Holding, boundary spanners are represented by top management, including Members of the Supervisory Board, Members of the Executive Board, Commissioners and Directors. At the unit or group level, boundary spanners are represented by positions such as Deputies, L-1 Directors, Heads of Division, Non-Supervisory Board Committees, L-2 and L-3 Directors, and task force teams. Meanwhile, at the individual level, boundary spanners are represented by all staff members in their respective positions.
Synthesised from various literature, the role of BPKH Holding as a boundary spanner is grouped into five: representation and institutional legitimacy (ambassadorial); market intelligence and information management (scout, guard and communicator); integration and coordination (facilitator, collaborator and task coordinator/organiser); network development and business opportunities (reticulist and entrepreneur); and implementation and value creation (enactor and service delivery).
The representation and legitimacy role focuses on conveying BPKH Holding’s interests to relevant stakeholders to gain support and build institutional legitimacy within the hajj and umrah ecosystem. The intelligence and information management role focuses on scanning, filtering, protecting and interpreting information from the environment to be distributed to relevant parties.
The integration and coordination role focuses on managing BPKH Holding’s interdependencies within the hajj and umrah ecosystem, building trust, and bridging differences in perspective between BPKH Holding and its various stakeholders.
The networking and business opportunity role focuses on building networks, combining resources and forming coalitions with relevant stakeholders. Meanwhile, the implementation and value creation role focuses on identifying the organisational boundaries being crossed, the parties being connected and the resources being integrated.
Nevertheless, these organisational roles as a boundary spanner do not automatically yield synergy, collaboration and orchestration. The role of every member of BPKH Holding, at their respective positions and levels, is needed to translate and execute them operationally so as to support the orchestration process among stakeholders within the hajj and umrah ecosystem.