INVESTMENT OF HAJ FUNDS IN ISLAMIC BONDS

The Religious Affairs Ministry of Indonesia will put Rp 9 trillion (US$828 million) of Haj and Umrah Trust funds in sukuk (Islamic bonds) to better manage the funds for the benefit of Muslims who want to undertake Haj pilgrimage. For the first instalment, the ministry will put Rp 1.5 trillion of funds in sukuk through a private placement system in May, Religious Affairs Minister Maftuh Basyuni said during a signing of memorandum of understandings (MoU) with the Finance Ministry. The one-year non-tradable sukuk, named the Indonesian Haj Funds Sukuk (SDHI) will have a coupon of 8.52 per cent, according to the Finance Ministry. The Religious Affairs Ministry now manages Rp 15.24 trillion and $59.19 million of Haj funds and Rp 713.45 billion and $66.21 million of Umrah Trust funds.