Presidential Regulation Affirms Investment of Hajj Fund is in Line with Sharia Principles

The authorities of Implementing Body of the Hajj Fund Management Body (BPKH) which mentioned in the Presidential Regulation Number 110 of 2017 on Hajj Fund Management Body (BPKH) stipulated by President Joko “Jokowi” Widodo on 11 December 2017 are as follows;

“In order to implement duties as mentioned in Article 10 to Article 17, Implementing Body of BPKH has the following authorities: a. to deposit and invest Hajj Fund based on Sharia, prudential, security, and value of benefits principles; b. to cooperate with other agencies in order to manage the Hajj Fund,” Article 18 point a, b of the Presidential Regulation says.

In addition to that, Implementing Body of BPKH also has authorities to : c. establish the organizational structure along with the duties and functions, working procedure, and personnel system; d. implement BPKH personnel management, including appointing, transferring, and terminating BPKH employees, as well as determining the salary of employees; e. propose the salary of Supervisory Board and Implementing Body to the President through the Minister; and f. stipulate conditions and procedures for procurement of goods and services in implementing the duties of BPKH by bearing in mind the principles of transparency, accountability, efficiency, and effectiveness.

The Presidential Regulation also states that the proposed salary for Supervisory Board and Implementing Body is prepared by the Implementing Body with due regard to the adecuacy based on the Hajj Fund ability, inflation rate, and performance.

The proposed salary as mentioned will be handed to the Minister and will be submitted to the President to get approval.

According to the Presidential Regulation, BPKH employees consist of: a. permanent employees; and b. employees who are appointed and terminated by the Head of Implementing Body according to the employment contracts.

The employees appointments as mentioned will be done in the following steps: a. establishing Selection Committee; b. announcing the registration; c. registration and selection process, and d. announcing the result of selection.

For contract employees, they will be appointed for a period of 2 (two) years as based on the employment contracts. “In the event when employment contract expires, the employees may be reappointed as required,” Article 30 Paragraph (2) of the Presidential Regulation says.

Further provisions on the procedures of appointing and terminating BPKH employees will be regulated in BPKH Regulations.

The Presidential Regulation also mentioned that during the transitional period, the BPKH is provided with fund for personnel and operational expenditures for a period not exceeding 6 (six) months until the transfer of all assets and liabilities, legal rights and obligations to Hajj Fund, as well as the properties from the Ministry of Religious Affairs to the BPKH.

“The amount of the fund as mentioned will be provided after written approval from the Minister is received, and considered as a part of personnel and operational expenditures sourced from value of benefits,” Article 32 Paragraph (2,3) of the Presidential Regulation says.

In implenting the tasks and functions, BPKH will receive technical and administrative supports from the Ministry of Religious Affairs for a period not exceeding 6 (six) months.

“The Presidential Regulation shall apply as of the date of its enactment,” Article 37 of Presidential Regulation Number 110 of 2017 promulgated by the Ministry of Law and Human Rights Yasonna H. Laoly on 12 December 2017 says. (Pusdatin/ES) (RAS/MMB/YM/Naster)