HAJ FUND INVESMENT IN INDONESIA 2018

HAJ FUND INVESTMENT IN INDONESIA 2018

By: Achmad Boys Awaluddin Rifai

BPKH' member sworn in by the President Joko Widodo (Mudanews.com)

Hajj is an annual procession involving millions of Muslims. From different corners of the world, Muslims deliberately to be present in Mecca and Medina, to perform the fifth pillar of Islam. Implementation of this worship, as evidence of compliance and obedience to the commands of Allah. If realized, this ritual, in fact not only the dimension of worship. Moreover, the pilgrimage has exceeded the limits of existing dimensions. Nowadays, the pilgrimage has been moving the various sectors of human life, including in its sector of the economy and business.

From an economic perspective, the Hajj rituals have moved the circulation of money (velocity of money) in the community. Trillions of rupiah collected through this annual procession. Precisely, more than five trillion rupiah funds flowing hajj every year.

Indonesia is a country with a number of the largest Muslim population in the world. In connection with the quotas Hajj Indonesia is the largest quotas in the world. Hajj registration every year in the world is increasing, especially in Indonesia this led to limited quota granted by the government of Indonesia throughout the year allow the pilgrims to queue for a few years and continues to increase until later years.

The high-interest of the Pilgrim approximately 221 thousand per year and 500 thousand Umrah pilgrims every year, the number of candidates was being Haji waiting until this year there are 2.8 million people in 2018.

Nevertheless Hajj Operation is identical to the issue of the utilization of funds prospective Haj pilgrims were not transparent use. The existence of Haji Fund Management Agency (BPKH) expected to be a surveillance solution. The data shows the accumulation of initial deposit fund Hajj Operation Cost (BPIH) in 2014 reached Rp. 73.79 trillion and in 2022 can reach about Rp. 147.67 trillion.

The large number of pilgrims who have signed up compared with the available quota, made a pilgrim in a normal atmosphere had to wait an average of 19 years. Data in the Ministry of Haj said that the waiting period is the shortest in North Sulawesi province that is 11 years old. Meanwhile, the longest waiting period is in Aceh and East Java, which is 22 years.

When the pilgrims had paid a down payment of Rp 25 million, then the money will settle during the waiting time, resulting in the accumulation of funds pilgrims in large numbers. Magnitude heaping amount proportionate to the amount hajj pilgrims were included in the waiting list (waiting list). This gives an idea of the potential of financial management, if done with the remains principled Sharia signs of prudence can be done without losing the values of Islam in order to maximize value for money.

Haj Fund Management is based on six criteria: sharia principles is all and every management of Hajj Fund based on the Islamic principle which is kafah or comprehensive; prudential principles is the management of Hajj Fund is done carefully, thoroughly, safely, and orderly and taking into account the financial risk aspect; benefits is the management of Hajj Fund should be able to provide benefits or maslahat for Jemaah Haji and Muslims; non-profit is the management of Hajj Fund undertaken through business management that prioritizes the use of funds development to provide the greatest benefit to Hajj pilgrims and the benefit of Muslims, but with no dividend for the managers; transparent is the management of Hajj Fund should be done openly and honestly through the provision of information to the community, especially to Hajj Pilgrims about the implementation and results of Hajj Finance management; and accountable is the management of Hajj Finance must be done accurately and accountable to the community, especially to Jemaah Haji.

In article 46 of Act No. 34, 2014, on the Procedures of Fund Management of Hajj, mentioned that;

1. Hajj fund shall be managed at Sharia Commercial Bank and / or Sharia Business Unit.

2. Hajj fund as referred to in paragraph (1) may be placed and / or invested.

3. In placement and / or investment as referred to in paragraph (2) shall be in accordance with sharia principles and take into account the aspects of security, prudence, value of benefits, and liquidity.

Continued in article 48 of Act No. 34, 2014 that:

1. Placement and / or investment Hajj Fund can be done in the form of banking products, securities, gold, direct investment and other investments.

2. The placement and / or investment of Hajj Fund on the date of paragraph (1) shall be conducted in accordance with sharia principles for reasons of security, prudence, benefits, and liquidity.

3. Further provisions concerning the placement and / or investment of Hajj Finance in a Government Regulation

Based on that act, BPKH clearly can choose if the Haj fund investment will be in place among infrastructure, property, investment sukuk or islamic bonds, and sharia banking products

Minister of Religious Affairs Lukman Hakim Saifuddin said that the BPIH may be managed for productive things, including infrastructure development. This refers to the constitution as well as fiqh rules.
"Haj funds may be used for infrastructure investments as long as compliance with sharia principles is prudent, clearly produces benefits, in accordance with legislation, and for the benefit of pilgrims and the community”

However, many argue that the placement on infrastructure is quite prone to leaks and does not directly impact the Hajj itself if it is returned to the Haj financial management objectives previously mentioned. Even other opinions are expressed But regardless of the political situation, the use of pilgrim funds still needs to be criticized for being vulnerable to abuse for short-term government purposes. For example, the government can create a derivative rule of haj funds management in the form of Government Regulation (PP) to increase the portion of Haj funds on the Sukuk instrument. This policy triggered a very logical anxiety, considering that 2018-2019 is the maturity of government debt of Rp 810 trillion. On the other hand, the government's budget deficit trend continues to widen even in the 2017 APBN-P is projected to be 2.92 percent or near the 3 percent safe limit. The government is worried about using Sukuk Haj funds to cover part of the debt maturity.

Alternative placement of other funds is to invest in the property sector. Malaysia's Hajj Institute (LTHM) builds properties that have long-term benefits, such as Tabung Haji Hotel in Keddah and Bay Pavilions in Sydney. Or Indonesia can use this Haj funds by building hotels or apartments in Mecca that can be used for the benefit of pilgrims so that the cost of pilgrimage can be cheaper. Can also for the improvement of lodgings or hajj dormitories will also be used for Indonesia umroh pilgrims from year to year is always increasing. Of course this alternative will be more felt impact for the Hajj pilgrimage itself.

Scheme or mechanism to manage. Financial hajj divided into two initial deposit of funds Implementation Cost Hajj (BPIH) and proceeds efficiency. BPIH deposited into the account of the Minister of Religious Affairs through the designated beneficiary bank deposit and managed by the Ministry of Religion by considering the value of the benefits, then most of these funds are invested in Shariah Securities (SBSN) or sukuk country. Furthermore, the value of benefits (yield optimization) is used to pay various operating expenses of pilgrims in Saudi Arabia. The results of the efficiency of the pilgrimage to the account used for the DAU and pilgrimage services, education and propaganda, health, social and religious, as well as infrastructure development for worship.

Hopefully those all suggest could be improve the quality of Hajj; rationality and efficiency of BPIH usage; and benefits for the benefit of Muslims. As we know that Haj as the fifth pillar of Islam was not only aims to increase piety and spiritual values of the perpetrators, but also save a great economic potential. Through Hajj economy may encourage the growth of Islamic banking and national and also contribute to national development.

فِيهِ ءَايَٰتٌۢ بَيِّنَٰتٌۭ مَّقَامُ إِبْرَٰهِيمَ ۖ وَمَن دَخَلَهُۥ كَانَ ءَامِنًۭا ۗ وَلِلَّهِ عَلَى ٱلنَّاسِ حِجُّ ٱلْبَيْتِ مَنِ ٱسْتَطَا عَ إِلَيْهِ سَبِيلًۭا ۚ وَمَن كَفَرَ فَإِ نَّ ٱللَّهَ غَنِىٌّ عَنِ ٱلْعَٰلَمِينَ

“In it are clear signs [such as] the standing place of Abraham. And whoever enters it shall be safe. And [due] to Allah from the people is a pilgrimage to the House - for whoever is able to find thereto a way. But whoever disbelieves - then indeed, Allah is free from need of the worlds” (Ali Imran: 97)

With the desire of the government to establish a special institutions in managing Haj savings funds and endowments people will increase the role of Islamic financial system, developing alternative investment instruments for investors both domestically and abroad who are looking for Islamic financial instruments and will encourage the growth of the Islamic financial market in Indonesia because the funding has a potential value Hajj great benefits if well-managed and accountable. Great benefits can be achieved through the management of investment products and financial services based on sharia productive and not at high risk with regard to the principles of sharia in investing.

In carrying out its function as a fund manager of a pilgrim, manager of the financial institution is required to seek profit a lot. But many businesses make a profit which was also accompanied by a large risk. Hence also necessary risk management in the management of the money that has been collected from the community. Corresponding word of God in the letter Luqman verse 34

وَمَا تَدْرِي نَفْسٌ مَاذَا تَكْسِبُ غَدًا

"... And no one can know with certainty what -what it earned tomorrow .." [Surah Luqman: 34] The verse explains in that Man may be planning a business activity or investment, but human beings can not be sure what we will get from the investment result, whether profit or loss. This is sunnatullah