Strengthen Functions, BPKH Requires Capital Reserves

Jakarta — The Head of the Indonesian Hajj Financial Management Agency (BPKH), Fadlul Imansyah, has discussed the potential development of hajj funds going forward, stating that BPKH requires capital reserves to maximise hajj fund management.

This step is important to enable BPKH to perform its functions more optimally in the future and enhance the value of benefits to pilgrims.

“Because so far BPKH has no capital. So when balanced, there is no equity,” Imansyah explained at the 99th Islamic Economists Roundtable 2026, themed “Mainstreaming Islamic Economics as a New Pillar of National Economic Growth” at Bank Mega Tower Auditorium, South Jakarta, on Tuesday (24 February 2026).

BPKH is currently awaiting a revision to the law governing hajj fund management. If passed, opportunities for future investment allocation would be substantially larger.

“The asset allocation set out in the law will be required to have a larger proportion directed into direct investment. Because the parliament knows that we cannot simply have to provide yields of around 7% and that is difficult,” Imansyah explained.

Currently, of BPKH’s Rp 180 trillion in managed funds, 75% is placed in Islamic bonds in rupiah form. The remaining 20% is placed in deposits with Islamic banks.

This presents a particular challenge for BPKH, which is constantly pressed to maximise hajj fund management. This is because returns from Islamic bonds and Islamic banks are not substantial.

“If we look at the yields from Islamic bonds, roughly the 10-year bonds yield around 6.4%. Whilst our target is actually above 7%. This is indeed very challenging from the Islamic bond perspective. Meanwhile, our other placements from the deposit side account for 20% at Islamic banks across Indonesia’s Islamic banking sector. And those yields are also relatively lower than that,” he concluded.