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Bloomberg
Indonesia is seeking new avenues to deploy a part of its $8 billion Hajj funds. But there’s a catch — potential suitors need to be Shariah compliant.
The government agency managing the Hajj fund in the world’s largest Muslim-majority country has accumulated 111 trillion rupiah ($7.9 billion) as the waiting list to make the holy pilgrimage for applicants stretches to 15 years, according to official data. With the cost of subsidising the trip rising every year, the agency is exploring ways to generate higher returns.
The Saudi Arabian government has set Indonesia’s Hajj quota at 221,000 this year, the largest contingent of pilgrims to attend the rite. The Hajj fund may increase to 121 trillion rupiah by the end of the year with its average return seen at 6.5 percent.