Investing haj funds, complying with sharia

Muhammad Shodiq
Sharia banking practitioner

PREMIUM

Jakarta / Mon, August 7, 2017 / 10:41 am

Investing haj funds, complying with sharia

According to the Religious Affairs Ministry, almost 40 percent of the haj funds have been invested in sukuk and project-based sukuk since 2010 under an agreement with the Finance Ministry. (Shutterstock/File)

President Joko “Jokowi” Widodo inaugurated recently the supervisory and executive boards of the newly established Haj Fund Management Agency (BPKH), which has taken over the management of the haj fund from the Religious Affairs Ministry. The President wants the BPKH to invest the funds in infrastructure projects as the government does not have enough funds to finance these projects. As of the end of 2016, the ministry managed Rp 95.2 trillion (US$7.14 billion) of potential pilgrims’ money. About Rp 54.57 trillion of the funds have been placed in Islamic time deposits, Rp 35.65 trillion in government sukuk and $10 million in conventional government bonds. The new agency estimates the funds will amount to Rp 100 trillion this year. This article explores the possible practice of Islamic management by the BPKH to make Indonesia a role model in serving the Muslim co...