Govt promises transparency in haj fund management

JAKARTA (JP): Minister of Religious Affairs Tarmizi Taher promised yesterday to personally ensure the better management of the haj pilgrim funds it collects every year.

During a hearing with Commission IX of the House of Representatives, Tarmizi said he would take responsibility for his office's handling of the funds.

"If it's not done correctly, I'll lose my job," he said.

The government this year introduced a new system to register people intending to make the 1996 pilgrimage to Mecca in Saudi Arabia. Everyone will now pay the full Rp 7.29 million ($3,200) fee in advance, rather than in installments as before. The government, after only 18 days, closed registration on Sept. 18 when it fulfilled the 195,000 total quota.

The new practice, however, has raised much concern with the potentially huge earnings the government stands to make in interest.

The issue was raised by legislators during the hearing with Tarmizi, whose office coordinates the haj pilgrimage for all Indonesians.

Tarmizi said the government plans to set up a permanent fund to manage the interest earnings from the haj fee, which he said reaches Rp 50 billion (US$22.2 million) annually.

President Soeharto will personally supervise the interest fund, which, he added, will be used to finance various projects and develop religious schools.

Tarmizi said he would have to consult Minister of Finance for the details of the plan.

Members of Commission IX, which oversees religious affairs, applauded the decision, but suggested that the government find another term for "interest earning" in view of the fact that Islam prohibits usury.

Tarmizi recounted how, during his meeting with President Soeharto on Wednesday, he was told to pay sharp attention to suggestions regarding the haj affairs. "Open up your ears to criticism regarding the haj operation," Soeharto instructed Tarmizi.

Indonesia has been allocated a quota of 195,000 people for the 1996 pilgrimage by the Saudi government.

Tarmizi said the introduction of the new system, called SISKOHAT, would eliminate rumors about the mishandling of haj fees.

"But this is a man-made system. It can be manipulated, but supervision will be tighter," he promised. (swe)