How BPKH Eases the Burden on Hajj Pilgrims Through Targeted Investment
The Hajj Financial Management Agency (BPKH) has emphasised that the Hajj funds managed by the government are not merely stored, but are invested, with the returns used to support the financing of Hajj operations.
Consequently, the amount of benefit recorded in a pilgrim’s virtual account cannot be equated to the total investment return on their initial deposits. This clarification addresses recent questions circulating on social media regarding Hajj funds, including an illustration suggesting that an initial deposit of Rp25 million made in 2018 has only generated approximately Rp3.2 million in benefits.
If that Rp25 million were assumed to earn a 5% annual return and the entire investment yield were given to the fund owner, the value would mathematically be higher. However, the mechanism for managing Hajj funds does not function like a fixed deposit or an individual investment.
The Head of the BPKUS (Executive Body of BPKH), Fadlul Imansyah, explained that the annual results of Hajj fund management must be distributed to two main groups: pilgrims still awaiting departure and pilgrims departing in the current year.
“Every year, the investment results we provide—or the total generated—are not entirely distributed to the virtual accounts of those waiting, but also to those departing,” said Fadlul.
Under this mechanism, the benefit value recorded in a pilgrim’s virtual account will indeed differ from the investment yield generated by BPKH. Fadlul provided an illustration: if the investment yield reaches 7%, that figure does not automatically flow entirely into the virtual accounts of waiting pilgrims. The benefit value must be shared to meet the needs of pilgrims departing in the current year.
“Suppose we achieve a 10% or 7% yield. That 7% yield for those waiting is not 7% because it is divided again. Let’s say it is 50-50, although sometimes the portion for those departing is larger than for those waiting,” he added.
Therefore, a low increase in the virtual account balance does not necessarily indicate that the pilgrims’ funds are not growing or are incurring losses. Rather, the results of the Hajj fund management are distributed through a different mechanism, including helping to reduce the cost burden for departing pilgrims.
According to Fadlul, this distribution of benefits is necessary because the cost of Hajj operations that pilgrims must pay upon departure could be much higher without support from the Hajj fund management benefits. Furthermore, the mechanism for distributing these benefits is not a unilateral decision by BPKH.
“Every distribution of benefits, whether for those waiting or departing, is previously determined by the House of Representatives (DPR) together with the government,” said Fadly.
He added that if the benefits were not allocated to departing pilgrims, the final settlement costs paid by pilgrims could increase significantly. “If it were not shared with departing pilgrims—since we only began distributing benefits in 2018—the final payment at the time of departure would automatically be extremely expensive without subsidies from BPKH,” he noted.
This explanation demonstrates that Hajj funds possess a different character compared to private investment accounts. When an individual deposits Hajj funds, they enter into collective fund management. BPKH then manages them through investment instruments and fund placements in accordance with applicable regulations.
The results of this management then become the benefit value used to support the implementation of the Hajj pilgrimage. This means that pilgrims cannot see the entirety of the investment returns solely through the figures appearing in their virtual accounts. The virtual account balance shows the portion of the benefit value allocated to the pilgrim, not the total return generated from the management of the Hajj funds.
BPKH explained that this mechanism is specifically designed so that the results of Hajj fund management can benefit both pilgrims still waiting and those who have reached their departure period.