On the 26th July 2017, the Indonesian government established the Hajj Fund Management Agency or Badan Pengelola Keuangan Haji (BPKH) to utilize the Indonesian Hajj fund for national infrastructure development. It has created dilemma for the Muslims in Indonesia. Bayu Taufiq Possumah explains this in the special report attached to this posting.

The Report says that, the Association for Indonesian Islamic Economists upholds that, the utilization of Hajj assets for framework advancement for foundation improvement isn’t opposing to Shariah law, and can use gathered public assets like Hajj or Waqf. It can’t be denied that, the limit of homegrown foundation in Indonesia is in need of tremendous improvement.

The speculation of Hajj subsidies will likewise uphold the advancement of the Islamic money industry as effectively applied in Malaysia and in a few other nations. Fundamentally, there are two alternatives of how to utilize Hajj reserves, the direct venture, and Sukuk financing which have a yield normal of 8-9% higher than banks.

The Indonesian Ministry of National Development Planning proposed that Hajj reserves be put resources into Sukuk. As per the Indonesian government, there are various reasonable ventures for Hajj speculation like Power plants, Airport projects, Cooperation projects between the public authority and business substance KPBU, Toll street speculations, and Property speculations. Thus, as the first significant advancement, the specialists should show their honest goals and clear political arrangement to the Muslim Community.