Soeharto assures public of proper use of haj fund

JAKARTA (JP): President Soeharto stated yesterday that the government will not reimburse the interest it earns from the huge fund it has collected from haj pilgrims, but promised the money would be put to good use for the benefit of Moslems.

"Should we refund the money earned from the banking service fee? I think not, because we will use it to beef up Islam's strength," Soeharto told a group of ulemas from Central Java, Antara reported.

For the third time in as many weeks, President Soeharto met with ulemas to discuss a wide range of issues. Yesterday, 73 ulemas from Central Java got their turn. Previously, the head of state received ulemas from East Java and West Java.

The President felt obliged to address the haj fund issue because questions were raised about the money now that the government requires all would-be pilgrims to pay the full fee in advance.

The government has already accepted payments from 195,000 people who registered for the 1996 pilgrimage by Sept. 18. They each paid the full fee of Rp 7.29 million ($3,200). Previously, would be pilgrims were only required to leave a deposit and then pay the rest of the money closer to their departure dates.

Minister of Religious Affairs Tarmizi Taher, during a hearing with the House of Representatives on Thursday, said the government stands to earn up to Rp 50 billion in interest earnings a year from the haj fund.

House members, while not questioning the fund, cautioned the government about the term "interest earning" because interest is considered usury in Islam and is therefore forbidden. They suggested the government find a word to replace "interest".

President Soeharto, who was accompanied by Tarmizi during yesterday's talks, explained that some of the money would be converted into U.S. dollars because the government must pay for certain services incurred in Saudi Arabia in the American currency.

Permanent fund

The income generated from this haj fund will be turned into a "permanent fund" which in turn will generate income from interest, he said.

Soeharto then related his experience in managing the Dharmais Foundation, one of several charity foundations that he heads as a private citizen.

Dharmais, which began with an initial fund of Rp 30 million, has now grown into quite a "huge sum", he said.

He did not give a precise figure, but pointed out that the foundation has built 700 mosques and over 1,000 orphanages from the interest earned on the permanent fund.

"The interest from the (haj) permanent fund could be used for the benefit of the (Moslem) community. The fund will be managed openly and transparently, subject to checks by anyone," he said.

Every region could ask the minister of religious affairs for money from the interest, he said. "The minister will go to the regions to assess their need."

During the talk, the President also explained the limit on the number of Indonesian haj pilgrims. It has been set at 195,000 by the Saudi Arabian government.

"We have to abide by this quota regulation," he said.

Those who can't travel next year, can perform the pilgrimage the following year, he promised further. (emb)