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Friday, 17 Aug 2018

Indonesia aims to have world largest haj fund in 10 years

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Indonesia aims to have world largest haj fund in 10 yearsIndonesia aims to have world largest haj fund in 10 years

News24xx.com -  The newly established Haj Fund Management Agency (BPKH) has pledged to match the performance of its Malaysian counterpart -- Tabung Haji (the Pilgrims Management and Fund Board) -- that was established in 1963 and managed IDR180 trillion (USD 13.52 billion) worth of assets in 2015.

The BPKH will manage IDR 99.3 trillion in haj funds, garnered from 3.4 million people who have paid deposits to go on the haj, by investing in sharia-compliant instruments.

The agency aims to be the world’s largest haj fund manager within 10 years through diversified investment with an 8 to 10 percent annual return, said BPKH supervisory board chairman Yuslam Fauzi over the weekend.

“Currently the funds are invested only in bonds, sukuk and state securities with a return of between 5 and 6 percent. We believe we can catch up with them [Tabung Haji] in only 10 years,” he said in a discussion in Jakarta on Saturday.

President Joko “Jokowi” Widodo last week inaugurated the executive board of the BPKH, which is tasked with taking over management of the haj fund from Religious Affairs Ministry.

The agency, which is independent according to Law No. 34/2014, is expected to be more capable of managing the fund by selecting more profitable, yet sharia-compliant investment instruments.

Indonesia has sent more than 200,000 people to Mecca on the haj. The waiting list for the haj is 15 to 20 years.

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