COPY

PRESIDENT OF
THE REPUBLIC OF INDONESIA

LAW OF THE REPUBLIC OF INDONESIA

NUMBER 34 OF 2014

ON HAJJ FUND MANAGEMENT

BY THE GRACE OF GOD ALMIGHTY

THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering : a. that the state secures the independence of each

citizen to embrace their respective religions and
to worship according to their religion and belief
as mandated in the Constitution of the Republic
of Indonesia 1945;

b. that the number of Indonesian citizens who

apply for registration to perform Hajj keeps on
increasing while the Hajj quota is limited. It
causes the increase in the number of Hajj in the
waiting list;

c. that the increase in the number of Hajj in the

waiting list has resulted in the accumulation of
accumulated hajj funds;

d. that there is potential to increase the benefit

value of hajj fund accumulation to support the
higher quality hajj administration through
effective, efficient, transparent, accountable Hajj
Fund Management, and in accordance with
provisions of the prevailing legislation;

e. that to secure effective, efficient, transparent and

accountable Hajj Fund Management, it requires
a strong legal umbrella;

f. that…f. that…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA

f. that based on considerations as referred to in

item a, item b, item c, item d, and item e, it is
necessary to establish a Law on Hajj Fund
Management;

In view of : Article 5 paragraph (1), Article 20 and Article 29 of the

Constitution of the Republic of Indonesia 1945;

At Joint Approval of

HOUSE OF PEOPLE’S RERPRESENTATIVES OF

THE INDONESIA OF REPUBLIC

and

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

HAS DECIDED:

To stipulate : LAW ON HAJJ FUND MANAGEMENT.

CHAPTER I GENERAL
PROVISION

Article 1

In this Law the following terms shall have meaning as

follows:

1. Hajj Fund shall mean all rights and obligations of

the central government that can be valued against
money related to the Hajj Administration as well as
all assets in terms of money or goods that can be
valued against money as a result of the
implementation of these rights and obligations, both
those originating from the Hajj Congregation and
other legal and non- binding sources.

2. Hajj…2. Hajj…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


2. Hajj Fund shall mean the fund being the deposit for
the cost of hajj administration, hajj administration
efficiency fund, people permanent fund, as well as the
benefit value controlled by the state for the hajj
administration and the implementation of program
activities for the Moslems benefit.

3. Dana Abadi Umat (People’s Permanent Fund),

hereinafter referred to as DAU, shall mean sum of
funds that prior to the effectiveness of Law Number
34 of 2014 regarding Hajj Fund Management was
gained from the development of DAU and/or the
remaining operational costs of Hajj Administration
and other legal (halal) and non-binding sources
according to the provisions of the legislation.

4. Hajj Fund Management Agency, hereinafter referred

to as BPKH, shall mean an institution carrying out
Hajj Fund Management.

5. Sharia Commercial Bank shall mean a bank

conducting business activities based on sharia
principles, that in its activities provides services in
payment traffic.

6. Sharia Business Unit shall mean a work unit of a

conventional commercial bank head office that
functions as the head office of an office or unit
carrying out business activities based on sharia
principles.

7. Bank Receiving Hajj Administration Costs,

hereinafter abbreviated as BPS BPIH shall mean
sharia commercial bank and/or sharia business
unit designated by BPKH.

8. Hajj…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


8. Hajj Treasury shall mean an account of the Hajj
Fund Management Agency with sharia commercial
bank and/or sharia business unit used to
accommodate the Hajj Fund.

9. Hajj Administration shall mean a series of activities

of the management of Hajj implementation that
includes the implementation of guidance, services,
and protection of Hajj Congregation organized by the
Government.

10. Special Hajj Administration shall mean the Hajj

Administration carried out by special Hajj
Administration agency with special management,
financing, and services.

11. Special Hajj Administration Agency, hereinafter

abbreviated as PIHK, shall mean a party that
administers special Hajj and already gaining permit
from the Minister as PIHK.

12. Hajj Administration Costs, hereinafter abbreviated

as BPIH, shall mean a sum of funds payable by
citizens who will perform the Hajj.

13. Special Hajj Administration Cost, hereinafter

referred to as Special BPIH shall mean a sum of funds
payable by citizens who will perform special Hajj.

14. Hajj Congregation shall mean Indonesian Moslems

and already having themselves registered to perform
the Hajj in accordance with the stipulated
requirements.

15. House of People’s Representatives, hereinafter

abbreviated as DPR shall mean the House of
People’s Representatives as referred to in the

Constitution of the Republic of Indonesia 1945.

16. Central…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


16. Central Government, hereinafter referred to as the
Government, shall mean the President of the
Republic of Indonesia who holds the authority of the
government of the Republic of Indonesia as referred
to in the Constitution of the Republic of Indonesia
1945.

17. Minister shall mean the minister of religion affairs.

Article 2

Hajj Fund Management shall be based on:

a. sharia principles;
b. prudential principle;
c. benefits;
d. non-profit;
e. transparent; and
f. accountable.

Article 3

Hajj Fund Management shall be aimed at improving:

a. the quality of the Hajj Administration;
b. rationality and efficiency in using BPIH; and
c. benefit for the Moslems advantages.

CHAPTER II
HAJI FINANCE

Article 4

Hajj Fund shall include:

a. revenues;
b. expenditures; and
c. assets.

Article 5…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 5

Hajj Fund receipts as referred in Article 4 item a shall

include:
a. BPIH and/or Special BPIH deposits;
b. the value of Hajj Fund benefits;
c. efficiency funds for hajj administration;
d. DAU; and/or
e. other legal and non-binding sources.

Article 6

(1) BPIH and/or Special BPIH deposit as referred to in

Article 5 item a shall be obtained from the Hajj
Congregation.

(2) BPIH and/or Special BPIH deposits as referred to in

paragraph (1) shall be paid to an account in the name
of BPKH in his capacity as the legal
representative of the Hajj Congregation on Cash Hajj
through BPS BPIH.

(3) Balance of BPIH and/or Special BPIH deposits shall

consist of deposits of BPIH and/or Special BPIH
together with the benefit value thereof.

(4) The Hajj Congregation shall not be allowed to

withdraw BPIH and/or Special BPIH deposit
balances.

(5) The withdrawal of BPIH and/or Special BPIH

deposits as referred to in paragraph (4) may only be
made if the Hajj congregation cancels their portions,
either due to death or other true reasons as
stipulated in the provisions of the legislation on Hajj
Administration.

Article 7…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 7

(1) Deposits of BPIH and/or Special BPIH as referred to

in Article 5 item a shall be the fund deposited by the
Hajj Congregation for the Hajj Administration.

(2) In case the BPIH and/or Special BPIH deposit

balance is greater than the fixed amount of the
current year’s BPIH and/or Special BPIH, BPKH
shall refund the difference to the Hajj Congregation.

Article 8

(1) The benefit value of Hajj Fund as referred to in

Article 5 item b shall be obtained from the proceeds
of Hajj Fund development.

(2) The benefit value of Hajj Fund as referred to in

paragraph (1) shall be placed on Hajj Treasury.

Article 9

(1) The efficiency funds for the Hajj Administration as

referred to in Article 5 item c shall be obtained from
the results of the operational cost efficiency of Hajj
Administration.

(2) The efficiency fund of Hajj Administration as

referred to in paragraph (1) shall be placed on the Hajj
Treasury.

Article 10

Hajj Fund Expenditures as referred to in Article 4 item b

shall include:

a. Hajj Administration;

b. BPKH operation;

c. placement…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA



c. placement and/or investment in Hajj Fund;

d. refunding of deposits of BPIH and/or Special BPIH

for Hajj Congregation cancelling their departure for
a true reason;

e. payment of Special BPIH deposit balance to PIHK;

f. payment of the benefit value of BPIH and/or Special

BPIH benefit;

g. activities for the Moslems benefit; and

h. refunding the difference of balance of the BPIH

and/or Special BPIH deposit and the fixed amount
of the current years’ BPIH and/or Special BPIH.

Article 11

(1) The amount of expenditure for Hajj Administration

as referred to in Article 10 item a shall be
determined by the Government after obtaining
approval from the DPR.

(2) Expenditures for the Hajj Administration as referred

to in paragraph (1) shall be made by transferring
funds from Hajj Treasury to the Hajj Administration
work unit’s treasury periodically.

(3) Further provisions on the procedure for transfer of

funds from the Hajj Treasury for the Payment of Hajj
Fund Expenditures as referred to in paragraph (2),
including the phases and amount of each phase, shall
be regulated in the Regulation of the Minister.

Article 12…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 12

(1) BPKH operational expenses as referred to in Article

10 item b shall include:
a. employee expenditure; and
b. office operational expenditure.

(2) Expenditures as referred to in paragraph [1] shall be

made based on rational, effective, efficient,
transparent, and accountable principles.

(3) The amount of expenditure as referred to in

paragraph (1) shall be determined based on a
percentage of the benefit value of Hajj Fund.

(4) The amount of expenditure as referred to in

paragraph (1) shall be proposed by BPKH and
determined by the Minister after obtaining approval
from DPR.

(5) Expenditures as referred to in paragraph (1) shall be

made by transferring funds from the Hajj Treasury
to the BPKH Treasury.

(6) The balance of BPKH operational budget shall be

returned to the Hajj Treasury.

Article 13

The expenditure for Hajj Fund placement and/or

investment as referred to in Article 10 item c shall be made
after obtaining approval from the Supervisory Board.

Article 14

Expenditures for refunding BPIH and/or Special BPIH

deposits of the Hajj Congregation as referred to in Article

10 item d shall be equal to the balance of the BPIH

and/or…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


and/or Special BPIH deposit and that paid to each account
of the Hajj Congregation whose departure is canceled.

Article 15

The expenditure for the payment of the Special BPIH

deposit balance to the PIHK as referred to in Article 10 item
e shall be paid in accordance with the number of Hajj
Congregation who have paid the Special BPIH and
departed in the current year.

Article 16

(1) The payment of BPIH and/or Special BPIH deposit

value payments as referred to in Article 10 item f shall
be made periodically by BPKH to the virtual account
of the Pilgrims.

(2) The amount of expenditure as referred to in

paragraph (1) is determined based on a percentage
of the value of Hajj Fund benefits.

(3) The percentage of the value of Hajj Fund benefits as

referred to in paragraph (2) is determined annually by
BPKH after obtaining approval from the DPR.

Article 17

Expenditures for activities for the Moslems benefit as

referred to in Article 10 item g shall be funded from the
benefit value of DAU.

Article 18

Assets as referred to in Article 4 item c shall include money

and goods that can be valued against money managed by
BPKH.

Article 19…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 19

Further provisions on revenue, expenditure and assets of

Hajj Fund as referred to in Article 4 shall be regulated in
the Government Regulation.

CHAPTER III
HAJJ FUND MANAGEMENT AGENCY

Part One
General

Article 20

(1) Hajj Fund Management shall be carried out by

BPKH.

(2) BPKH as referred to in paragraph (1) shall be public

legal entity based on this Law.

(3) BPKH as referred to in paragraph (2) shall be

independent and responsible to the President
through the Minister.

(4) The Hajj Fund Management by BPKH shall be

conducted on corporative and non-profit basis.

The Part Two

Domicile

Article 21

(1) BPKH as referred to in Article 20 paragraph (1) shall

have domicile and head office in the capital city of
the Republic of Indonesia.

(2) BPKH…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


(2) BPKH as referred to in paragraph (1) may have a
representative office in the province and a branch
office in the district/city.

Third Part
Duties, Functions, Authority, Rights and Obligations

Paragraph 1
Duties

Article 22

BPKH shall have duties to manage the Hajj Fund

covering revenue, development, expenditure, and
accountability for Hajj Fund.

Paragraph 2
Function

Article 23

In performing the duties as referred to in Article 22,

BPKH shall have functions as follows:

a. Hajj Fund receipt, development and expenditure

planning;
b. Implementation of Hajj Fund receipt, development,
and expenditure;
c. Hajj Fund receipt, development, and expenditure
control and supervision; and
d. reporting of and accountability for Hajj Fund
receipt, development, and expenditure.

Paragraph 3
Authority

Article 24…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 24

In carrying out the duties as referred to in Article 22, BPKH

shall have the authorities as follows:

a. placing and investing Hajj Fund in accordance with

the sharia, prudential, security, and benefit value
principles; and

b. entering into cooperation with other institutions for

Hajj Fund Management.

Paragraph 4
Rights

Article 25

To carry out the duties and functions as in Article 22

and Article 23, BPKH shall have the right to obtain
operational funds for implementation of the Hajj Fund
Management program which fund is from the benefit value
of Hajj Fund.

Paragraph 5
Obligation

Article 26

To carry out the duties and functions as in Article 22

and Article 23, BPKH shall:

a. manage Hajj Fund transparently and accountably

for the maximum interest of the Hajj Congregation
and the Moslems benefit;

b. provide information through media on its

performance, financial condition, and assets and the
results of its development on routine basis by semi-
annually;

c. provide…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA



c. provide information to Hajj Congregation on the

benefit value of BPIH and/or Special BPIH through
virtual accounts of each Hajj Congregation;

d. prepare accounting in accordance with applicable

accounting standards;

e. report the implementation of Hajj Fund

Management, periodically by semi-annually to the
Minister and DPR;

f. periodically pay the benefit value of BPIH and/or

Special BPIH deposits to the virtual account of each
Hajj Congregation; and

g. refund the difference of balance of the BPIH and/or

Special BPIH deposit and the fixed value of the
current year’s BPIH and/or Special BPIH to the Hajj
Congregation.

Part Three
Organ

Paragraph 1
Structure

Article 27

The BPKH organ shall consist of the executive agency

and the supervisory board.

Paragraph 2
Executive Agency

Article 28…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 28

(1) The executive agency shall have the Hajj Fund

planning, implementation, accountability and
reporting function.

(2) In carrying out the functions as referred to in

paragraph (1), the executive agency shall have
duties as follows:
a. to prepare the formulation of policies, strategic
plans, and annual action plan and budget of
the Hajj Fund Management;

b. to implement the prescribed Hajj Fund

Management program and recommendations
on the supervision and monitoring findings
from the supervisory board;

c. to administer the Hajj Fund Management and

BPKH assets in accordance with provisions of the
prevailing legislation;

d. to report on the implementation of the program

and the annual budget of the Hajj Fund
Management periodically to the supervisory
board;

e. to prepare BPKH accountability report to the

President and DPR;

f. to stipulate technical provisions on BPKH

operational implementation;

g. to organizes the administration of Hajj Fund

Management in accordance with provisions of
the prevailing legislation; and

h. to prepare…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


h. to prepare financial statement in accordance
with provisions of the prevailing legislation.

(3) In carrying out the tasks referred to in paragraph

(2), the executive agency shall be authorized to:
a. carry out the authority of BPKH;

b. determine the organizational structure together

with the main tasks and functions,
organizational work procedures, and staffing
systems;

c. organize BPKH staffing management, including

appointment, mutation, and dismissal of BPKH
employees and determine the salary of BPKH
employees;

d. propose to the President through the Minister

the honorarium of the supervisory board and the
executive agency; and

e. stipulate provisions and procedures for the

goods and services procurement for the
implementation of BPKH's duties by
considering the transparency, accountability,
efficiency, and effectiveness principles.

(4) Further provisions on the procedures for the

implementation of the functions, duties and
authority of the executive agency as referred to in
paragraph (1), paragraph (2), and paragraph (3)
shall be set forth in the Regulation of the President.

Article 29

(1) The Executive Agency as referred to in Article 5 shall

consist of at least 5 (five) members from professional
elements.

(2) The Members…

 PRESIDENT OF
THE REPUBLIC OF INDONESIA


(2) The Members of the Executive Agency as referred to
in paragraph (1) shall be appointed and dismissed
by the President.

(3) The Members of the Executive Agency shall be

appointed for a term of 5 (five) years and may be
proposed to be reappointed for another 1 (one) office
term.

Article 30

(1) The supervisory board shall have the supervisory

function to the Hajj Fund management.

(2) In carrying out the function as referred to in

paragraph (1), the supervisory board shall have duties
as follows:
a. to carry out assessment of the formulation of
policies, strategic plan, annual action plan and
budget of the Hajj Fund Management;

b. to carry out supervision and monitoring to the

implementation of Hajj Fund Management; and

c. to assess and provide consideration to the

accountability report on the implementation of
Hajj Fund Management and BPKH
management before it is stipulated as a BPKH
report.

(3) In carrying out the duties as referred to in

paragraph (2), the supervisory board shall be
authorized:
a. to approve strategic plan and annual action
plan and budget of the Hajj Fund Management;

b. to approve the placement and/or investment of

Hajj Fund;

c. to obtain…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


c. to obtain and/or request for a report from the
executive agency;

d. to access data and information on Hajj Fund

Management;

e. to conduct review to data and information on

the Hajj Fund management; and

f. to provide advice and recommendations to the

President through the Minister regarding the
performance of the executive agency.

(4) Further provisions on the procedures for carrying

out the functions, duties and authorities of the
supervisory board as referred to in paragraph (1),
paragraph (2), and paragraph (3) shall be set forth
in the Regulation of the President.

Article 31

(1) The Supervisory Board as referred to in Article 5

shall consist of 7 (seven) members from professional
elements.

(2) The Supervisory Board as referred to in paragraph

(1) shall consist of 2 (two) persons from the
government element and 5 (five) persons from the
community element.

(3) The members of the Supervisory Board from the

government element as referred to in paragraph (2)
shall consist of:
a. 1 (one) person from the ministry of religion
affairs; and

b. 1 (one) person from the ministry of finance.

(4) The members…

 PRESIDENT OF
THE REPUBLIC OF INDONESIA


(4) The members of the Supervisory Board from the
community element as referred to in paragraph (2)
shall be elected by a selection committee established
by the President.

(5) Further provisions on the election and nomination

of members of the supervisory board shall be set forth
regulated in the Regulation of the President.

Article 32

(1) Members of the supervisory board as referred to in

Article 31 paragraph (1) shall be appointed and
dismissed by the President.

(2) The President shall appoint one of the members of

the supervisory board as referred to in paragraph (1)
as the chairman of the supervisory board.

(3) The members of the supervisory board shall be

appointed for the service term of 5 (five) years and
may be proposed to be reappointed for another 1 (one)
service term.

(4) In carrying out his duties and functions, the

supervisory board may be assisted by an audit
committee.

(5) The establishment of the audit committee shall be

determined by the supervisory board.

Fourth part
BPKH employees

Article 33

(1) BPKH employees shall be BPKH employees.

(2) BPKH…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


(2) BPKH employees shall be Indonesian citizens who,
owing to their expertise, are appointed as employees
at BPKH.

(3) Further provisions on the conditions of and

procedures for the appointment of BPKH employees
shall be regulated in the Regulation of the President.

CHAPTER IV
QUALIFICATIONS, PROCEDURES FOR SELECTION AND
DETERMINATION, AS WELL AS DISMISSAL OF
MEMBERS OF EXECUTIVE AGENCY AND MEMBERS
OF
SUPERVISORY BOARD

Part One
Qualifications of Members of Executive agency
and Members of the Supervisory Board

Paragraph 1
General Requirements

Article 34

(1) The qualifications of the prospective members of

executive agency and supervisory board shall be as
follows;
a. Indonesian citizens;

b. Moslem

c. physically and mentally healthy;

d. having good integrity and personality;

e. having appropriate qualifications and

competencies for Hajj Fund Management;

f. minimum…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA



f. minimum of 40 (forty) years of age and

maximum of 60 (sixty) years at the time of
being nominated as a member;

g. not being member or management of a political

party;

h. free from any judicial process whether as the

suspect or accused; and

i. never being subjected to criminal sanction or

imprisonment based on the absolute court
judgment due committing criminal offense
threatened with imprisonment of 5 (five) years
or more;

j. not having double position; and/or

k. Having knowledge about Islamic (sharia)

economics.

(2) During his service term, neither the member of the

executive agency nor member of the supervisory
board shall be allowed to have position in
government, other legal entities, or as state officials.

Paragraph 2
Special Qualification

Article 35

(1) In addition to the general requirements referred to

in Article 34 paragraph (1), the candidates of
executive agency and candidates of supervisory
boards shall meet special qualification namely
competence and experience in the field of financial
management for at least 5 (five) years.

(2) Further…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA



(2) Further provisions on special qualifications shall be

regulated in the Regulation of the President.

Part Two
Procedure for selection and determination of Members of
Executive agency and Members of the Supervisory Board

Article 36

(1) To elect and appoint members of the executive

agency and members of the supervisory board, the
President shall establish a selection committee.

(2) The membership of the selection committee as

referred to in paragraph (1) shall consist of 3 (three)
persons from Government elements and 6 (six)
people from community elements.

(3) The membership of the selection committee as

referred to in paragraph (2) shall be stipulated in the
Decree of President.

Article 37

(1) The selection committee as referred to in Article 36

shall announce the registration of candidates of
members of the executive agency and members of
the supervisory board within not later than 5 (five)
business days after the determination thereof.

(2) The registration and selection of candidates of

members of the executive agency and members of
the supervisory board shall be opened for 30 (thirty)
business days continuously.

(3) The selection committee shall announce the names

of candidates of members of the executive agency

and the names…

 PRESIDENT OF
THE REPUBLIC OF INDONESIA


and the names of the candidates of the supervisory
board to the public to request for their response
within not later than 5 (five) business days after the
registration is closed.

(4) The responses as referred to in paragraph (3) shall

be submitted to the selection committee within not
later than 15 (fifteen) business days as of the date of
announcement.

(5) The selection committee shall determine the

candidates of members of the executive agency and
members of the supervisory board that will be
submitted to the President namely 2 (two) times the
number of positions required within not later than
10 (ten) business days as of the date of the closing
of the response submission period from the public.

Article 38

(1) The President shall elect and appoint the members

of the supervisory board from Government elements
and members of the executive agency based on the
proposal of the selection committee.

(2) The President shall submit the names of candidates

of the supervisory board who are from the
community elements to DPR namely 2 (two) times
the number of positions required within not later than
10 (ten) business days as of the date of receipt of
the list of candidates from the selection
committee.

(3) DPR shall elect the members of the supervisory

board from the community elements as referred to
in paragraph (2) within not later than 20 (twenty)
business days as of the date of receipt of proposal
from the President.

(4) The Chairperson…

 PRESIDENT OF
THE REPUBLIC OF INDONESIA



(4) The Chairperson of DPR shall submit the name of

the elected candidates as referred to in paragraph
(3) to the President within not later than 5 (five)
business days as of the end of the election.

(5) The President shall determine the elected candidates

as referred to in paragraph (4) within not later than
30 (thirty) business days as of the date of receipt of
the letter from the chairperson of DPR.

(6) The determination of the members of the

supervisory board from the government elements
and members of the executive agency as referred to in
paragraph (1) shall be carried out simultaneously
with the determination of the members of the
supervisory board as referred to in paragraph (5).

Article 39

Further provisions on the procedure for selection and

determination of the members of the executive agency
and members of the supervisory board as referred to in
Article 36, Article 37, and Article 38 shall be set forth in
the Regulation of the President.

Part Three
Dismissal

Article 40

The dismissal of the members of the executive agency or

members of the supervisory board shall occur for the
reasons as follows:
a. passing away;
b. expiry of service term; or
c. dismissal.

Article 41…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 41

(1) Members of the executive agency or members of the

supervisory board may be subjected suspension on
the grounds of:
a. continuous illness for more than 3 (three)
months thereby unable to carry out their
duties;

b. determined as the suspect; or

c. subject to administrative sanction in terms of

suspension.

(2) In the event the members of the executive agency or

members of the supervisory board are subjected to
suspension as referred to in paragraph (1), the
President shall appoint the official ad interim by
taking into account the Minister's consideration.

(3) The members of the executive agency or members of

the supervisory board as referred to in paragraph (1)
shall be reinstated if they have been declared
healthy to carry out their duties, if their status as a
suspect is revoked, or the administrative sanction of
suspension is revoked.

(4) Reinstating as referred to in paragraph (3) shall be

made within not later than 30 (thirty) days as of the
date of declaration on his healthy, the revocation of
the suspect status, or the revocation of
administrative sanction in term of suspension.

(5) The suspension of members of the executive agency

or members of the supervisory board as referred to
in paragraph (1) and the reinstating as referred to in
paragraph (3) shall be carried out by the President.

Article 42…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 42

The members of the executive agency or members of the

supervisory board shall be dismissed from his position
on the grounds of:

a. persistent illness for 6 (six) months thereby unable

to carry out their duties;

b. failure to carry out their duties as members of the

executive agency or members of the supervisory board
continuously for more than 3 (three) months for
reasons other than those referred to in item a;

c. harming BPKH and the interests of the Hajj

Congregation because of the offense in taking policy;

d. as accused for committing a crime;

e. no longer eligible as a member of the executive

agency or a member of the supervisory board;
and/or

f. resigning by submitting resignation letter.

Article 43

In the event that members of the executive agency or

members of the supervisory board resigns as referred to
in Article 40 item a or dismissed as referred to in Article
42, the President shall appoint members of the executive
agency and/or members of the supervisory board to
continue the remaining service term of position replaced.

Article 44

(1) In the event of vacant positions in the members of

the executive agency and members of the
supervisory board as referred to in Article 43, the

President…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


President shall establish a selection committee to
elect prospective interim substitute members.

(2) The procedure for the selection and determination of

candidates for interim substitute members as
referred to in paragraph (1) shall be implemented in
accordance with the provisions referred to in Article
36, Article 37, Article 38, and Article 39.

(3) In the event that the remaining vacant service term

as referred to in paragraph (1) is less than 18
(eighteen) months, the President shall appoint an
interim substitute member based on the Minister's
proposal.

(4) The Minister shall submit the proposal as referred

to in paragraph (3) based on the ranking of the
selection results.

(5) Further provisions on the procedure for selection

and determination of intermittent substitute
member as referred to in paragraph (1), paragraph (2),
paragraph (3), and paragraph (4) shall be set forth in
the Regulation of the President.

CHAPTER V
PROCEDURES FOR HAJJ FUND MANAGEMENT

Article 45

(1) BPKH shall prepare a strategic plan for term of 5

(five) years.

(2) Based on the strategic plan as referred to in

paragraph (1), BPKH shall prepare annual action
plan and budget.

(3) The annual…

 PRESIDENT OF
THE REPUBLIC OF INDONESIA


(3) The annual action plan and budget as referred to in
paragraph (2) shall be accompanied with an
overview of the annual action plan and budget.

(4) The strategic plan as well as the annual action plan

and budget as referred to in paragraph (1) and
paragraph (3) shall be determined by the executive
agency, after obtaining approval from DPR.

(5) The annual action plan and budget as referred to in

paragraph (4) shall become a reference in the
implementation of Hajj Fund Management.

Article 46

(1) Hajj Fund shall be managed in a Sharia Commercial

Bank and/or Sharia Business Unit.

(2) The Hajj Fund as referred to in paragraph (1) may

be placed and/or invested.

(3) The placement and/or investment as referred to in

paragraph (2) shall be made in accordance with
sharia principles and consider security, prudence,
value of benefits, and liquidity aspects.

Article 47

(1) BPKH shall manage and provide Hajj Fund at

amount equivalent to the needs of 2 (two) times the
cost of Hajj Administration.

(2) The determination of the amount of needs as

referred to in paragraph (1) shall be regulated by the
Decree of the Minister.

Article 48…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 48

(1) The Hajj Fund Placement and/or investment may be

made in terms of banking products, securities, gold,
direct investments and other investments.

(2) The Hajj Fund Placement and/or investment as

referred to in paragraph (1) shall be carried out in
accordance with sharia principles by considering
security, prudential, benefit value, and liquidity
aspects.

(3) Further provisions on the Hajj Fund placement

and/or investment shall be regulated in the
Government Regulation.

Article 49

(1) Placement and/or investment of Hajj Fund is

carried out with the approval of the supervisory
board.

(2) The Hajj Fund Placement and/or investment as

referred to in paragraph (1) shall be transferred from
Hajj Treasury to BPKH Treasury.

Article 50

BPKH in the management of Hajj Fund shall use

currency unit of rupiah.

Article 51

Further provisions on the procedures for Hajj Fund

Management shall be regulated in the Government
Regulation.

CHAPTER VI…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


CHAPTER VI
ACCOUNTABILITY

Article 52

(1) The executive agency shall submit accountability

reports on the implementation of Hajj Fund
Management to the supervisory board on a monthly,
quarterly, semi-annually and annually basis.

(2) The accountability reports on the implementation of

Hajj Fund Management as referred to in paragraph
(1) shall consist of performance reports and
financial statement.

(3) The financial statement as referred to in paragraph

(2) shall include budget realization reports, operational

reports, cash flow statements, balance sheets, and
notes to the financial statements.

(4) The financial statement as referred to in paragraph

(3) shall be prepared and presented in accordance
with the applicable accounting standards.

(5) BPKH shall submit accountability reports on the

implementation of Hajj Fund Management to the
President and DPR through the Minister by semi-
annually.

(6) The accountability reports on the implementation of

Hajj Fund Management shall be audited by the
Audit Board in accordance with provisions of the
prevailing legislation.

(7) BPKH shall submit the accountability reports on the

implementation of Hajj Fund Management already
audited by the Audit Board to the President and

DPR…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


DPR through the Minister within not later than
June 30 of the following year.

(8) The accountability reports on the implementation of

Hajj Fund Management as referred to in paragraph
(5) shall be published in the form of executive
summary through electronic media of at least 2
(two) national scale printed media and within not
later than July 31 of the following year.

Article 53

(1) The Members of executive agency and members of

supervisory board shall be jointly and severally
responsible for losses resulting from the placement
and/or investment of the entire Hajj Fund caused
by errors and/or negligence in its management.

(2) The members of the executive agency and members

of supervisory board shall be discharged from
responsibility for losses as referred to in paragraph
(1), if able to prove that:
a. the loss is not due to his error or omission;

b. he has carried out management and

supervision in good faith and prudence in the
interest of and in accordance with the
objectives of Hajj Fund Management as referred
to in Article 3;

c. he has no conflict of interest either directly or

indirectly to the act of the Hajj Fund
management that results in losses; and

d. he has taken act to prevent the loss arising or

continuing.

(3) At the end of service term, the members of the

executive agency and members of the supervisory

board…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


board shall submit accountability reports on the
implementation of their duties to the President and
DPR.

CHAPTER VII
SUPERVISION

Article 54

(1) Supervision to BPKH shall be carried out internally

and externally.

(2) BPKH internal supervision shall be carried out by

the supervisory board.

(3) BPKH external supervision shall be carried out by

DPR based on the audit finding by the Audit Board.

CHAPTER VIII
COORDINATION AND RELATIONSHIP WITH OTHER
INSTITUTIONS

Article 55

(1) BPKH in carrying out its duties and functions shall

make coordination with ministries/institutions
related to the Hajj management, financial services,
and investment, both domestically and abroad.

(2) BPKH may cooperate with business entities and/or

institutions, both domestically and abroad, in the
interest of improving the quality of Hajj Fund
Management and BPKH institutional development
and guidance.

(3) The coordination and cooperation as referred to in

paragraph (1) and paragraph (2) shall be carried out

in the preparation…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


in the preparation and determination of policies
related to the improvement in the quality of Hajj Fund
Management.

CHAPTER IX
CLOSING

Article 56

Upon effectiveness hereof, all provisions relating to the

Hajj Fund management in Law Number 13 of 2008
regarding the Hajj Administration and all regulations being
implementing regulations of Law Number 13 of
2008 regarding Hajj management, shall be declared to
remain effective as long as not contradictory to the
provisions in this Law.

Article 57

The implementing regulations hereof shall be stipulated within

not later than 1 (one) year as of the promulgation hereof.

Article 58

BPKH shall have been established within not later than 1

(one) year as of the promulgation hereof.

Article 59

Within not later than 6 (six) months as of the

establishment of BPKH, all assets and liabilities as well
as legal rights and obligations to Hajj Fund and their
assets shall shift to become the assets and liabilities as
well as legal rights and obligations of BPKH.

Article 60

This law shall take into effect on the promulgation date.

For…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


For public cognizance, it is instructed to promulgate this
Law by inserting the same in the State Gazette of the
Republic of Indonesia.

Ratified in Jakarta
on October 17, 2014
PRESIDENT OF THE REPUBLIC OF
INDONESIA,

Signed

DR. H. SUSILO BAMBANG YUDHOYONO

Promulgated in Jakarta
on October 17, 2014
MINISTER OF LAW AND HUMAN
RIGHTS OF THE REPUBLIC OF
INDONESIA,

Signed

AMIR SYAMSUDIN

STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2014 NUMBER

296

True copy
MINISTRY OF STATE SECRETARIAT OF
REPUBLIC OF INDONESIA
Deputy of Minister of State Secretary
Law and Legislation,

[signed and sealed]

Muhammad Sapta Murti

 PRESIDENT OF
THE REPUBLIC OF INDONESIA

ELUCIDATION
TO

LAW NUMBER 34 OF 2014

ON
HAJJ FUND MANAGEMENT

I. GENERAL

The 1945 Constitution of the Republic of Indonesia stipulates that

the state is based on the One Supreme God and secures the
independence of each citizen to embrace their respective religions and
to worship according to their religion and belief.

Hajj is one of the worships that shall be obligatorily performed

by every Moslem who is capable, once in a lifetime. Driven by of this
obligation, the number of Indonesian Moslems who registered to
perform the hajj keeps on increasing, while the available haj quota is
limited. As the result, there is increase in the number of Hajj
Congregation in the waiting list. On the other hand, the increase in
the number of Hajj Congregation in the waiting list led to the
accumulation of Hajj Congregation funds in significant amount.

There is potential to increase the benefit value of the

accumulation of the Hajj Congregation fund that may be allocated to
support quality Hajj Administration. The increase in the benefit value
of the Hajj Congregation funds may only be achieved through effective,
efficient, transparent and accountable fund management.

To secure the realization of ideal Hajj Fund Management, it is

necessary to formulate Law on Hajj Fund Management. In addition to
regulating the hajj congregation BPIH deposit management, this Law
also stipulates the DAU and other non-binding sources. Hajj Fund
Management is conducted in the form of investments of which the
benefit is used to improve the quality of the Hajj Administration,
rationality, and efficiency of BPIH, as well as for the benefit of
Moslems. On the other hand, this Law also mandates the

management…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


management of Hajj Fund by sharia, prudence, benefits, non-profit,
transparent, and accountability principles. To conduct the Hajj Fund
management, this Law established the BPKH as a public legal entity
that is independent and responsible to the President through the
Minister. BPKH has domicile in the capital city of the Republic of
Indonesia and may have representative offices in provinces and
branch offices in districts/municipality. BPKH organ consists of the
executive agency and the supervisory board. BPKH has duties to carry
out Hajj Fund Management that includes Hajj Fund receipt,
development, expenditure, and accountability for. BPKH is also
authorized to place and invest Hajj Fund in accordance with sharia,
prudence, security, value of benefits, and liquidity principles. In
addition, BPKH is also authorized to cooperate with other institutions.

In carrying out these duties and functions, BPKH shall manage

Hajj Fund transparently and accountably for the maximum interests
of the Hajj congregation and the benefit of Muslims, provide information
through the media about performance, financial condition and assets,
and the results of its development periodically by semi- annually,
provide information to the Hajj Congregation on the benefits of BPIH
and/or Special BPIH through a virtual account of each Hajj
Congregation, accounting in accordance with applicable accounting
standards, report the implementation of Hajj Fund Management
periodically every 6 (six) months to the Minister and DPR, pay the benefit
value of the BPIH and/or Special BPIH periodically to the virtual
account of each Hajj Congregation, and refund the difference of balance
of BPIH and/or Special BPIH deposit and the fixed amount of current
year’s BPIH and/or the Special BPIH to the Hajj Congregation.

II. ARTICLE BY ARTICLE

Article 1
Self-explanatory.

Article 2
Item a

“sharia principle…
“sharia principle…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


"Sharia principle" shall mean that all and every Hajj Fund
management shall be based on the comprehensive sharia
principles.

Item b
"Prudential principle" shall mean that the Hajj Fund
management shall be carried out carefully, thoroughly,
safely, and in an orderly manner and considering
financial risk aspects.

Item c
"Benefits" principle shall mean that the Hajj Fund
management shall be able to provide benefit or
benevolence for the Hajj Congregation and Moslems
community.

Item d
"Non-profit" principle shall mean that the Hajj Fund
management shall be carried out through business
management prioritizing the use of the results of
development funds to provide maximum benefits for the
Hajj Congregation and the benefit of Moslems, but with no
dividend distribution to the managing parties.

Item e
"Transparent" principle shall mean that the Hajj Fund
management shall be carried out transparently and
honestly by the provision of information to the public,
especially to Hajj Congregation on the implementation
and results of Hajj Fund Management.
Item f
"Accountable" principle shall mean that the Hajj Fund
management shall be carried out accurately and
accountable to the public, especially to Hajj Congregation.

Article 3
Self-explanatory.

Article
Article
4… 4…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA



Article 4
Self-explanatory

Article 5
Self-explanatory.

Article 6
Paragraph (1)
Self-explanatory.

Paragraph (2)
"In his capacity as a legal representative" shall mean
being allowed to use the terms Qualitate Qua or "qq" so that
the account in favor of BPKH in his capacity as the legal
representative of the Hajj Congregation in banking can be
abbreviated to "account a.n. BPKH qq Congregation of
Hajj".

Paragraph (3)
Self-explanatory.

Paragraph (4)
Self-explanatory.

Paragraph (5)
Self-explanatory.

Article 7
Paragraph (1)
The deposit fund of Hajj Congregation shall be the fund
that are not recorded in the state budget.

Paragraph (2)
Self-explanatory.

Article 8
Self-explanatory.

ArticleArticle
9… 9…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 9
Self-explanatory.

Article 10
Item a
Self-explanatory.

Item b
Self-explanatory.

Item c
Self-explanatory.

Item d
Self-explanatory.

Item e
Self-explanatory.

Item f
Self-explanatory.

Item g
Activities for the Moslems benefit shall include the activities
of the hajj ritual services, education and Islam propagation,
health, socio-religious, economic community, as well as the
construction of worship facilities and infrastructure.

Item h
Self-explanatory.

Article 11
Self-explanatory.

Article 12
Self-explanatory.

Article 13…
Article 13…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 13
Self-explanatory.

Article 14
Self-explanatory.

Article 15
Self-explanatory.

Article 16
Paragraph (1)
"Virtual account" shall mean shadow account that is
linked to a master account. The virtual account has BPKH
identification number opened by the bank at the request
of the BPKH to be subsequently provided by BPKH to the
Hajj Congregation as the account number to receive the
benefits.

Paragraph (2)
Self-explanatory.

Paragraph (3)
Self-explanatory.

Article 17
Self-explanatory.

Article 18
Self-explanatory.

Article 19
Self-explanatory.

Article 20
Paragraph (1)
Self-explanatory.

Paragraph (2)
Self-explanatory.

Paragraph
Paragraph
(3)… (3)…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA



Paragraph (3)
Self-explanatory.

Paragraph (4)
"Corporate" shall mean the principle of fund management
based on the enterprises pattern as practiced by companies
or corporations, prioritizing efficiency and effectiveness in
the use of resources and results.

Article 21
Self-explanatory.

Article 22
Self-explanatory.

Article 23
Self-explanatory.

Article 24
Self-explanatory.

Article 25
Self-explanatory.

Article 26
Self-explanatory.

Article 27
Self-explanatory.

Article 28
Self-explanatory.

Article 29
Self-explanatory.

Article 30
Self-explanatory.

Article 31…
Article 31…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 31
Self-explanatory.

Article 32
Self-explanatory.

Article 33
Self-explanatory.

Article 34
Self-explanatory.

Article 35
Self-explanatory.

Article 36
Self-explanatory.

Article 37
Self-explanatory.

Article 38
Self-explanatory.

Article 39
Self-explanatory.

Article 40
Self-explanatory.

Article 41
Self-explanatory.

Article 42
Self-explanatory.

Article 43
Self-explanatory.

Article 44…
Article 44…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 44
Self-explanatory.

Article 45
Paragraph (1)
Self-explanatory.

Paragraph (2)
"Annual action plan and budget" shall mean the annual
action plan and budget documents that contain
programs, activities, performance targets, and Hajj Fund
Management budgets

Paragraph (3)
Self-explanatory.

Paragraph (4)
Self-explanatory.

Paragraph (5)
Self-explanatory.

Article 46
Paragraph (1)
Self-explanatory

Paragraph (2)
Self-explanatory

Paragraph (3)
"Security aspect" shall mean the Hajj Fund management
shall be carried out by prioritizing the security aspect in
anticipating the risk of loss of Hajj Fund Management to
guarantee the financing of Hajj Administration. In
addition, in investing it shall also consider aspects of risk
including risk of default, reputation, market, and
operations.

“Benefit
“Benefit
value…
value…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


"Benefit value" shall mean that a portion of the Hajj Fund
can be placed and/or invested on sharia principles and
considers risk factors and liquid in nature.

"Liquidity" shall mean considering the ability and

smoothness of payment in for the current and future Hajj
Administration.

Article 47
Paragraph (1)
The word "manage" shall mean the placement of Hajj Funds
on sharia banking products by considering the security,
benefit value, and liquidity aspects.

Paragraph (2)
Self-explanatory.

Article 48
Self-explanatory.

Article 49
Self-explanatory

Article 50
Self-explanatory.

Article 51
Self-explanatory.

Article 52
Self-explanatory.

Article 53
Self-explanatory.

Article 54
Self-explanatory.

Article 55…
 PRESIDENT OF
THE REPUBLIC OF INDONESIA


Article 55
Self-explanatory.

Article 56
Self-explanatory.

Article 57
Self-explanatory.

Article 58
Self-explanatory.

Article 59
Self-explanatory.

Article 60
Self-explanatory.

STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2014 NUMBER

5605

I, Fatchurozak, a sworn and authorized translator, by the virtue of Jakarta Capital

Territory Governor�s Decree No. 1690/2007, practicing in Jakarta, do solemnly and
sincerely declare that the foregoing document is a true and faithful translation from
Indonesian into English of the original version.

Jakarta, October 31, 2019