BPKH Proposes Including Instalment Payments for Hajj Settlement in Its Managed Ecosystem

The Hajj Financial Management Agency (BPKH) has proposed that the instalment scheme for hajj settlement payments be incorporated into BPKH’s management ecosystem as part of revisions to the Hajj Financial Management Law. Fadlul Imansyah, Head of the BPKH Executive Board, stated that instalment funds for initial deposits and settlement payments currently held in the Islamic banking industry are estimated to reach around Rp80 trillion. If these funds can be managed by BPKH, the total managed funds could potentially increase to approximately Rp260 trillion. “We have found that reportedly, third-party funds in the form of settlement payment instalments plus initial deposit instalments in the Islamic banking industry total Rp80 trillion, which are not captured within BPKH. They should be within the BPKH ecosystem,” Fadlul said in Jakarta on Friday. He explained that managing these funds could provide more optimal returns, thereby helping to reduce the additional costs that pilgrims must pay upon departure. “If the settlement payment instalments are included, they will be managed and then generate returns so that pilgrims do not need to top up or pay extra,” he said. He assessed that a clear and well-documented governance mechanism would help mitigate various potential issues in the investment decision-making process. Fadlul expressed hope that the regulatory revision would receive support from various parties as part of efforts to strengthen the state’s representation in managing hajj funds. “A tug-of-war in the policy formulation process is normal. What is important is how strengthening this governance can provide greater benefits for Indonesian hajj pilgrims,” he stated. Previously, Fadlul Imansyah considered the revision of the Hajj Financial Management Law necessary to strengthen investment flexibility, capital reinforcement, optimisation of pilgrim deposit funds, and oversight in hajj fund management. Fadlul said investment flexibility is needed so that BPKH has a stronger legal basis to make direct investments in the hajj and umrah ecosystem. “Why is flexibility important? Because the supporting infrastructure system of the law does not yet allow us to execute decisively,” Fadlul said. According to him, such investments could help lower or stabilise the costs of various supporting facilities for hajj operations while providing greater value benefits for pilgrims.