Remarks of President of the Republic of Indonesia at the 2023 Working Meeting of the Hajj Fund Management Agency (HFMA), at the State Palace, Jakarta, December 12, 2023
Bismillahirrahmanirrahim,
Assalamu’alaikum warahmatullahi wabarakatuh,
Distinguished Cabinet Ministers,
Chairperson and Members of Board of Supervisors, and Chairperson and Members of the Hajj Fund Management Agency (HFMA);
Distinguished Chairperson of the National Alms Agency (Baznas),
Deputy Governor of Bank Indonesia,
Ladies and Gentlemen,
A month and a half ago I visited Saudi Arabia twice. The first visit was related to bilateral relations between Indonesia and Saudi Arabia, and the second one was the Gaza Summit. During the first visit – bilateral meeting between Indonesia and Saudi Arabia– after a serious talk about investment and trade, I had a lunch meeting with His Royal Highness Prince Mohammed bin Salman and his Ministers from Saudi Arabia during which I felt that the vibe was good. And His Royal Highness and his ministers were also in good mood.
I told him: “Your Royal Highness, did you know that prospective pilgrims in Indonesia have to wait up to 47 years to perform Hajj?” He was shocked, “Really?” he said. I told him: “Yes, Your Royal Highness. I hope that Your Royal Highness would like to grant additional Hajj quotas.” He answered: “Tomorrow morning I will inform Your Excellency about it and I will make a decision tonight.”
That night, the Ambassador of Saudi Arabia called me, “President Jokowi, it has been decided that there will be an additional Hajj quota for 20,000 people.” Let me tell you that if you ask for something, don’t do it in a formal setting. In the past, I asked for additional Hajj quota during a luncheon and we got an additional 10,000 hajj quota.
The performance of the HFMA has always been the center of public attention because it manages a very large amount of Hajj funds. Chairperson of the HFMA has stated that the funds managed by HFMA are Rp165 trillion. It is a very large amount of money.
I remind the HFMA to manage the funds prudently. The HFMA Chairperson has said that 75 percent of the funds are invested in SBSN (State Sharia Securities). Thank God, this is a prudent investment at Bank Indonesia. There is also a direct investment of two percent. In my opinion, this is also a prudent investment.
The HFMA must avoid investment in low quality stock to avoid any financial loss. Don’t forget the Jiwasraya case. We must prevent the same cases from happenning again. I urge the HFMA to uphold professionalism, accountability, prudence, and sharia principles in managing hajj funds. After all, you manage the public funds.
This is something we have to think about. There is a large amount of money managed by the HFMA and that money must be managed prudently. The Government and the House of Representatives (DPR) have set the cost of the Hajj pilgrimage at Rp93.4 million (around US$5962) with 40 percent of the cost coming from investment yield of the funds as previously mentioned by Minister of Religious Affairs.
The HFMA must be more innovative in the future and internal supervision must also be improved. Regarding the establishment of subsidiaries, it should further increase efficiency and not complicate the bureaucracy. Everything must be managed professionally.
These various efforts must be made not only to subsidize hajj expenses for hajj pilgrims, but also to provide greater benefit for pilgrims waiting in the very long list, while still paying attention to the financial sustainability of the hajj funds. The HFMA must also improve its contribution to sharia economy, including in sharia financial sector, halal industry, and other industries.
I am of the view that the HFMA can perform its duties prudently with a full sense of responsibility so that hajj pilgrimage will be better organized in the days to come.
Finally, let me extend my congratulations to the HFMA for its 6th anniversary. I reiterate my message to the HFMA to always carry out its responsibility prudently.
That concludes my remarks on this auspicious occasion.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh