BPKH head clarifies controversial declaration on Hajj fund utilization

The federal government must not even more escalate the level of public disappointment by making use of the Haj pilgrims’ funds for other requirements, consisting of a discourse on their use for Bank Indonesia’s foreign exchange intervention

Jakarta – Hajj Fund Management Firm (BPKH) Head Anggito Abimanyu clarified that the federal government did not cancel Hajj 2020 for Indonesians to Capital based upon his May-26 statement on Hajj fund usage for strengthening rupiah’s currency exchange rate.

” There is no connection between the cancellation of our Haj pilgrims’ departure for this year’s Hajj expedition season and the Haj funds of US$600 million,” he noted in a press statement that ANTARA got in Jakarta on Wednesday.

Abimanyu stated that the plan to strengthen the rupiah exchange rate by making use of Haj funds in the event of cancellation of this year’s departure of Hajj pilgrims was his expression of “halal bihalal” at a virtual post-Idul Fitri gathering with the Bank Indonesia governor and his deputies.

The BPKH head clearly denied an assumption that his statement on the scheme to strengthen the rupiah currency exchange rate by using the Haj funds was the factor behind the government cancelling the departure of Indonesian pilgrims to Capital during this year’s Hajj season.

Apart from Abimanyu’s description, Deputy Speaker of the People’s Consultative Assembly (MPR) Syarief Hasan expressed argument to a discourse to divert the Indonesian Hajj funds, totaling Rp8.7 trillion, for the function of foreign exchange intervention.

” The government should not even more escalate the level of public dissatisfaction by using the Haj pilgrims’ funds for other requirements, including a discourse on their use for Bank Indonesia’s forex intervention,” he had mentioned previously.

Hasan stated that the reserve bank must utilize its dollar reserve, forecasted to reach US$1279 billion, rather of the Hajj pilgrims’ funds, for intervening in the foreign exchange market to reinforce the rupiah value versus the United States dollar.

Hasan expressed his views on the discourse to utilize the Indonesian Haj pilgrims’ funds for the reserve bank’s forex intervention following the Indonesian Federal government’s choice to cancel the departure of Indonesia’s Hajj pilgrims this year.

Hasan completely understood that the federal government’s decision had actually caused dissatisfaction amongst a number of Indonesians eligible for leaving for Capital for this year’s Hajj trip season because they had conserved up for it considering that long.

A number of pilgrims had also conserved cash for 10s of years, however owing to the novel coronavirus illness pandemic that badly affected a number of countries, consisting of Saudi Arabia, they failed to carry out Hajj pilgrimage this year, he explained.

For this reason, the government must not even more intensify the level of public dissatisfaction with the discourse on using their Hajj funds for the reserve bank’s foreign exchange intervention for reinforcing the rupiah currency exchange rate against the US dollar, Hasan mentioned.

The Indonesian federal government has actually officially revealed its decision to not send out Hajj pilgrims to Saudi Arabia in 2020 in the middle of the COVID-19 pandemic.

Religious Affairs Minister Fachrul Razi announced the federal government’s decision at a virtual interview on Haj trip on Tuesday.

The hajj trip stands cancelled in accordance with Religious Affairs Minister Policy No. 494 of 2020, as the safety and health of pilgrims should be focused on, right from their departure to throughout the course of the pilgrimage and upon their go back to the country.

The choice was taken on the basis of a comprehensive research study conducted by a group of the ministry and after consultation with the Indonesian Ulema Council (MUI).

Related news: Indonesia’s Hajj funds are not for foreign exchange intervention: MPR

Related news: Indonesia announces cancellation of Hajj trip 2020 amidst COVID-19

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