BPKH Reveals the State of Hajj Funds Amid Volatile Rupiah
The Hajj Financial Management Agency (BPKH) has assured that the rupiah’s weakness against the United States dollar does not shake pilgrims’ haj funds. BPKH emphasises that the haj funds managed remain safe because the foreign currency required for organising this year’s haj pilgrimage had already been purchased earlier when exchange rates were still stable.
Member of the BPKH Executive Board, Acep Riana Jayaprawira, said all haj fund management is carried out with prudence through low-risk investment instruments and placements in line with the mandate in Law Number 34 of 2014 on the Management of Hajj Finances.
‘The funds are well recorded. In making investments and placements, we proceed with prudence. We conduct risk assessments, legal reviews, and compliance checks, and these pass through the committee,’ Acep said after the ‘BPKH Connect’ event in Semarang, Central Java, on Wednesday, 20 May 2026.
He noted that every investment decision is not taken lightly because it involves seven members of the executive body and seven members of the supervisory board. The arrangement is designed to ensure the haj funds remain safe and do not lose value.
Currently, he said, BPKH is only allowed to place funds in low-risk instruments because it has not yet built up capital or a loss reserve, as regulated in older regulations.
Therefore, he hopes that a revision of the Haj Finance Management Act will later provide space for capital formation and a loss reserve so that fund management can be more flexible, yet still safe. ‘Hopefully with changes to the law, after there is capital and permission to form a loss reserve, BPKH can move into a slightly higher level of risk than low,’ he said.
He admitted that the biggest challenge in maintaining haj funds’ sustainability today stems from fluctuations in the rupiah’s exchange rate against the US dollar and the Saudi riyal, given that haj operational needs largely use foreign currencies. ‘If the exchange rate is high, more rupiah will be required to pay for hotels, flights, and catering in Saudi Arabia,’ he noted.
Nevertheless, Acep assured that the current rupiah weakness has not yet affected the cost of organising haj this year because foreign currency needs were bought earlier when rates were still stable.