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"Too Many Subsidies, BPKH: Indonesian Hajj Funding is Not Fair and Ideal"

Dream - Member of the BPKH (Hajj Financial Management Agency), Acep Jayaprawira, stated that the fairness of the costs imposed on each prospective pilgrim is key to maintaining the sustainability of Hajj finances.

Too Many Subsidies, BPKH: Funding for Indonesian Hajj is Not Fair and Ideal

Currently, the cost of hajj in Indonesia, which is the result of cross-subsidies and hajj fund investments, has become the lowest cost in Southeast Asia. However, he said that the current hajj funding is still unfair and not ideal.

Too Many Subsidies, BPKH: Funding for Indonesian Hajj is Not Fair and Ideal

"The thing that needs to be understood is the importance of maintaining the sustainability of Hajj finances. Currently, the value of the investment benefits generated by its allocation is still mostly used to subsidize the pilgrims who are departing at the moment."

The text translates to: "The words of Acep Jayaprawira are quoted from Merdeka.com, Wednesday, June 12, 2024."

               

Acep mentioned that the ratio of the use of benefits to the cost of Hajj that has occurred so far is not yet ideal. Thus, justice in Hajj funding has not been fully realized.

Too Many Subsidies, BPKH: Funding for Indonesian Hajj is Not Fair and Ideal

He continued, the ideal subsidy ratio is 70-30. That means, ideally prospective pilgrims bear 70 percent of the Hajj Travel Cost (BPIH/Bipih) and BPKH bears the rest of the benefit value.

Too Many Subsidies, BPKH: Funding for Indonesian Hajj is Not Fair and Ideal

"As an example, if the cost of organizing the Hajj is Rp100 million, then the prospective Hajj pilgrim will pay Rp70 million sourced from the initial deposit and final deposit as well as the value of benefits from each virtual account. Therefore, BPKH will cover the remaining Rp30 million.""

"katanya." translates to "he/she/they said."

               

"He believes that better quality and efficiency in organizing the Hajj can be achieved with adequate funding support. On the other hand, currently BPKH faces several challenges in managing the Hajj funds, including restrictive regulations that limit its maneuverability, causing BPKH to act cautiously with careful calculations."

"According to Article 53 of Law Number 34 of 2014, in the event of losses, the BPKH management must bear them collectively or in other words, jointly responsible, so the investment choices made must prioritize the safety of the pilgrims' funds."

"tuturnya." in English: "he/she said."

               

"Oleh karena itu, Acep emphasized the need for revising the Law 34/2014 to provide greater flexibility to BPKH in managing investments and forming loss reserves. "Our main goal is to ensure that the funds managed provide maximum benefits for the Hajj pilgrims and the Muslim community as a whole," said Acep Jayaprawira."

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