Video: BPKH's Key Challenges in Managing Hajj Funds Amid Rupiah Weakness

Jakarta — Indonesia’s Hajj Fund Management Authority (BPKH) reported that hajj funds under management reached 180.72 trillion rupiah by the end of 2025. The BPKH is responsible for managing, safeguarding and developing hajj funds securely and transparently in accordance with Islamic principles of accountability.

In managing hajj funds, BPKH Head Fadlul Imansyah cited several key challenges, primarily ensuring that fund valuations remain protected and consistent with targets amid significant rupiah volatility. This is particularly critical because approximately 80 per cent of the 18 trillion rupiah annual hajj costs are paid in US dollars and Saudi riyals.

To address these challenges, BPKH is committed to maximising fund management to keep hajj costs affordable and reduce the burden on pilgrims. In its investment management approach, BPKH allocates 75 per cent of hajj funds to Islamic Government Securities, denominated in both rupiah and US dollars.

The authority must also ensure sufficient liquidity reserves equivalent to twice the annual hajj fund requirements to prevent hajj costs from becoming problematic. BPKH Head Fadlul Imansyah discussed the detailed management of hajj funds in an interview on CNBC Indonesia’s Profit programme.