Indonesia set up committee to Invest Hajj Funds in Saudi Arabia’s Property Sector
The Hajj Fund Management Agency (BPKH) of Indonesia planned to invest hajj funds in the property sector in Saudi Arabia. The investment option has been running this year and the agency has even established a working group.
“We want to go into the property first because it’s a bit complex,” said a member of the agency’s executive board Amri Yusuf at the Muhamadiyah Building, Central Jakarta on Friday, February 17, 2023.
Amri explained that BPKH was still seeking partners in Saudi as the requirement of the investment. When a partnership is made with a local company, the agency can then find hotels that can be rented in a long term. The lodging facilities would be then used for the benefit of Indonesian pilgrims.
According to Amri, cooperation with local partners in Saudi could reduce the cost of hajj. Because if the option of direct investment is taken, investors cannot pursue decent returns.
For now, the Indonesian government rented a hotel per person which was charged around 4,000 Riyals. “When we have our own, it won’t cost that much, it can cost 2,000-3,000 Riyals, that’s efficient. Because after all, the funds are from us,” Amri explained.
For the scheme, Amri continued, BPKH hoped that investment cooperation would have a long term of at least 5 years. If necessary, if there is a change in regulations that could last 100 years, “we’ll just buy it.”
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