IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/22161_11.html
   My bibliography  Save this book chapter

Financial sustainability challenges of Hajj Financial Management Agency (BPKH): What really matters?

In: Islamic Finance in Eurasia

Author

Listed:
  • Dony Perdana
  • Saeed Awadh Bin-Nashwan
  • Aishath Muneeza
  • M. Kabir Hassan

Abstract

This chapter aims to evaluate the Hajj financial management system by Hajj Financial Management Agency (BPKH) with challenges that have the potential to impact the financial sustainability of Hajj funds; assesses the effectiveness of the implementation of the Hajj fund subsidy system associated with the financial sustainability of the Hajj fund; and proposes solutions to overcome the Hajj financial management system and Hajj fund subsidy systemHajj fundssubsidy system. A qualitative research approach through interviews along with a documents review was used to collect data and achieve the research objectives. 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 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. This study is the first of its kind to examine the financial sustainability of the Hajj Financial Management Agency (BPKH) in Indonesia. In addition to being a reference for future researchers, this study could also serve as an impetus for policymakers to design strategies that overcome the weaknesses of the Hajj financial management system and the Hajj fund subsidy systemHajj fundssubsidy system.

Suggested Citation

  • Dony Perdana & Saeed Awadh Bin-Nashwan & Aishath Muneeza & M. Kabir Hassan, 2024. "Financial sustainability challenges of Hajj Financial Management Agency (BPKH): What really matters?," Chapters, in: M. K. Hassan & Paolo Biancone & Aishath Muneeza (ed.), Islamic Finance in Eurasia, chapter 11, pages 222-251, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:22161_11
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/doi/10.4337/9781035308705.00021
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:22161_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.