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Challenges facing the financial sustainability of hajj financial management agency (BPKH) in Indonesia

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Date
2022
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Abstract
In Indonesia, the implementation of the hajj pilgrimage is managed in two aspects, which are implementation of the hajj pilgrimage carried out by the Ministry of Religion of the Republic of Indonesia and the financial management of the hajj carried out by the Hajj Financial Management Agency (BPKH). This study evaluates the hajj financial management system by BPKH with challenges that have the potential to impact the financial sustainability of hajj funds; assesses the effectiveness of implementation of the hajj fund subsidy system associated with the financial sustainability of the hajj fund; and proposes solution to overcome the hajj financial management system and hajj fund subsidy system. In this study, document review and interviews were conducted. The results of the analysis show that there are challenges in the hajj fund management system in terms of regulation, which are the issuance of the Law Number 8 of 2019 about the management of hajj and umrah that regulates different things for the same substance in Law Number 34 of 2014 about hajj financial management. This resulted in the unclear relationship and flow of hajj financial management related to the implementation of the hajj pilgrimage between two related institutions, which are the Ministry of Religion and the BPKH. In addition, regarding the financial sustainability of the hajj in the practice of providing subsidies for the implementation of the hajj, it can be stopped gradually. If the subsidy system is to be continued, it will make hajj finances unsustainable and not in accordance with sharia principles and justice. Recommendations needed include increasing Hajj Travel Costs (Bipih) and distributing the value of benefits to virtual accounts of prospective hajj pilgrims along with the gradual reduction of subsidies for future hajj costs. In addition, recommendations for changes and harmonization of BPKH legislation and the Ministry of Religion related to the mechanism for determining BPIH, BPIH efficiency, and accountability for reporting on the implementation of hajj as well as improving coordination in the planning process and accountability for reporting on the implementation of hajj. The expected outcome of this research can be used as material in submitting recommendations and/or designs improvement of regulations/policy of hajj in Indonesia.
Keywords
Hajj fund management agency , Badan Pengelola Uang Haji (BPKH) , Hajj pilgrim , Indonesia , Project paper (eMIF)
Citation
Perdana, D. (2022). Challenges facing the financial sustainability of hajj financial management agency (BPKH) in Indonesia (Master dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/4014
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INCEIF

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