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Investing haj fund in infrastructure is more profitable: Minister
To support President Joko "Jokowi" Widodo's idea on the use of haj fund, Coordinating Economic Minister Darmin Nasution has said investing haj fund in the country's infrastructure project is more profitable than saving it in bank deposit.
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Coordinating Economic Minister Darmin Nasution (JP/Wienda Parwitasari)
T
o support President Joko "Jokowi" Widodo's proposal for the use of the haj fund, Coordinating Economic Minister Darmin Nasution has said investing the haj fund in the country's infrastructure projects would be more profitable than saving it as a bank deposit.
"The haj fund is a long term fund. If we just save it as a bank deposit, the interest rate will only be about 5 to 6 percent. But if we invest it in the infrastructure sector, we will get a 12 to 13 percent return," he said in Jakarta on Monday.
Previously, President Jokowi inaugurated the executive board of the Haj Fund Management Agency, whose task is to manage the haj fund, which was previously managed by the Religious Affairs Ministry, at the Presidential Palace last Wednesday.
Read also: Jokowi to pick leaders for haj fund agencyDuring the event, Jokowi called on the agency to use the fund to develop infrastructure projects, such as toll roads and ports.
Darmin said Malaysia had used its fund for infrastructure development for 30 years.
The total haj fund managed by the religious affair ministry in 2016 reportedly reached Rp 95.2 trillion (US$6.96 billion).
The figure was expected to rise after Saudi Arabia increased the normal haj pilgrim quota for Indonesia by an additional 10,000 places to 210,000. The quota had been cut by 20 percent because renovations were being made to the al-Haram Mosque over the last two years. (rdi/bbn)
