Danamon Sharia Strengthens Synergy with BPKH, Supports Digital Hajj Registration and Planning for Youth

Jakarta, July 23 2020 –  PT Bank Danamon Indonesia Tbk ("Danamon"), through the Sharia Business Unit, was appointed as the Recipient Bank for Deposits for Hajj Operation Fees (BPS-BPIH) covering the period 2021-2024. This appointment extended the 2018 collaboration with the Hajj Financial Management Agency (BPKH) which ended in June 2021. This extension of collaboration was formalized during the signing of the Cooperation Agreement between BPKH and BPS-BPIH in Jakarta on Thursday, 15 July 2021 along with more than 30 sharia banks/business units.

“We are grateful and honored to have been once again given the trust by the Hajj Financial Management Agency (BPKH) as a designated Bank Receiving Deposits - Costs of Hajj Operations (BPS-BPIH). We are ready to perform the mandate given by BPKH as BPS Recipient, Placement, Value of Benefits and Investment Partner. Through this partnership, we hope to continue supporting the development of Danamon Sharia Banking and more broadly at the national level, as well as improve services for people who want to register for Hajj," said Danamon Sharia and Sustainability Finance Director Herry Hykmanto.

Based on data from the BPKH Financial Report, as of December 2020, hajj funds managed by BPKH reached Rp144.91 trillion, an increase of 16.56% compared to 2019 which recorded Rp124.32 trillion. The allocation of hajj funds in BPS-BPIH reached Rp45.33 trillion (31.3%) wherein the funds consisted mainly of deposits and demand deposits. This placement position conforms to PP Number 5 of 2018 mandate wherein liquidity capacity is very adequate because the placements in these Islamic banks can be withdrawn any time. In this regard, Hajj funds are SAFE and liquidity is maintained. The value of Hajj managed funds will continue increasing to provide good societal and economic benefits, particularly for the sharia economy.

"The synergy between BPKH and BPS-BPIH banks provides opportunities for greater development of Hajj finance, bringing benefits and value for financing the implementation of Hajj pilgrimages. Placement of hajj funds in Islamic banking offers a long-term source of funds that can develop the sharia economy which benefits the people. BPKH and BPS-BPIH also work hand-in-hand to improve registration services for prospective pilgrims, including digitalizing hajj registration services and door-to-door hajj services together with the Indonesian Ministry of Religion. This certainly makes it easier for prospective hajj pilgrims, especially during the current pandemic, " said the Head of the BPKH Implementing Agency, Anggito Abhimanyu.




 “Danamon Sharia is committed to always support BPKH in providing the best service for prospective pilgrims. The Haji Muda program is just an example of Danamon Sharia’s support for BPKH. The younger generation can prepare for Hajj at an early stage through the iB Hajj Plan Savings,” continued Herry.

Herry also added that Danamon Sharia also supports the use of digital infrastructure for easier Hajj registration in the future. Currently, Danamon’s platform allows the opening of a Sharia Savings account digitally. We are preparing for the future so that Hajj registration and payment processes can be made through digital channels.

Most Hajj activities require endurance so it would be better if Hajj can be performed at a young age. In view of the increasing waiting period for annual Hajj departures, which presently averages 21 years, the youth is encouraged to register early so they can perform Hajj at a young age.