The Bureaucracy and Financial Management of Hajj in Indonesia: An Analysis of the Legal Standing and Institutional Structure of the Badan Pengelolaan

: This article scrutinizes the legal standing and institutional analysis of the Hajj Financial Management Agency (BPKH) within the constitutional framework in Indonesia. Through a literature review, the author investigates and re-examines the legal standing and institutional structure of BPKH, employing a normative-empirical legal study approach that explores legal norms, regulations, or secondary legal data along with an assessment of the effectiveness of norm application. The findings and conclusions are as follows: 1) Regarding legal standing, Law Number 34 of 2014 on the Management of Hajj Finances serves as the foundation and mandate for establishing BPKH. However, a disharmony exists between Law Number 34 of 2014 on the Management of Hajj Finances and Law Number 8 of 2019 on the Implementation of Hajj Worship. 2) In terms of institutional aspects, BPKH is an independent institution as stipulated in the Law on Hajj Financial Management. Nevertheless, BPKH's independence differs from other independent institutions, leading to the conclusion that BPKH is functionally independent but not structurally independent. This research aims to serve as a reference for policymakers to strengthen and consolidate the position of BPKH.


Introduction
The Badan Pengelolaan Keuangan Haji (BPKH) was established in July 2017 by President Joko Widodo, in line with the mandate of Law No. 34 of 2014.Presidential Regulation No. 110 of 2017 formalized BPKH as a public legal entity, operating independently and reporting directly to the President through the Minister. 1he enactment of Law No. 34 of 2014 was prompted by a surge in Hajj registrants in Indonesia, leading to increased fund accumulation.Mismanagement concerns under the Ministry of Religious Affairs, which held multiple roles in Hajj implementation, necessitated a legislative change.The concentrated authority in the Ministry facilitated mismanagement and political influence over Hajj finances.
The BPKH's establishment aimed to address weaknesses in Hajj financial management, marked by corruption cases.Anticipated as an independent, professional, and transparent institution, BPKH's role evolved from the Badan Pengelola Dana Abadi Umat (BP-DAU) initiative. 2 Despite five years of efforts (2018-2022) in optimizing Hajj fund management, potential challenges arise from legal and institutional overlaps.Law changes, particularly Law No. 8 of 2019 on the Implementation of Hajj, create disharmony with Law No. 34 of 2014.Maintaining trust among the faithful and becoming a reliable financial manager is a crucial challenge for BPKH. 3 The investment discourse for Hajj funds, discussed since BPKH's inauguration, faces both support and opposition. 4 Through the exposition above, the five years of BPKH functioning as an independent body managing Hajj finances are not without challenges.The identified problems, such as those in legal standing that can impact the institutional existence, authority, and responsibilities of BPKH itself, indicate that there are challenges in BPKH's efforts to improve and innovate in the management of Hajj finances. 6In the context of legal  However, this study distinguishes itself by offering fresh insights into regulatory challenges and BPKH's institutional position in Indonesia. 9he research aims to address two main questions.Firstly, it explores the legal standing of Hajj Financial Management in Indonesia, scrutinizing potential ambiguities or overlaps in relevant legislation.Secondly, it delves into the institutional framework of BPKH within Indonesia's constitutional system.

Method
This research employs a normativeempirical legal research approach, combining the study of legal norms, regulations, and secondary legal data with a practical assessment. 10The focus is on evaluating the adequacy of existing legal principles within the context of Hajj financial management.
The normative aspect centers on Laws Number 34 of 2014 (Hajj Financial  Management) and Number 8 of 2019 (Implementation of Hajj).Empirically, the study examines the Badan Pengelolaan Keuangan Haji and the Ministry of Religious Affairs.
For data analysis, a qualitative approach with a descriptive language is used.The methodology involves content analysis, emphasizing objectivity, systematicity, generalization, and interpretability.Diverse sources, including official government websites, social media, newspapers, magazines, annual reports, and academic materials, undergo content analysis.

Legislative Process of Establishing BPKH
Through the legislative process of the Draft Law on Hajj Financial Management (RUU PKH), the Vice Chairman of Commission VII provided several crucial notes on the proposed government-initiated bill.These notes revolved around the establishment of a special body to manage Hajj finances, the management of the endowment fund as a surplus from organizing the Hajj rituals, issues concerning fund optimization, and the allocation of funds directly for pilgrims versus those that are not. 11egarding the form of the special body managing Hajj funds, the Vice Chairman of Commission VII expressed that the parliament tends to prefer a separate entity independent from the organization of Hajj rituals conducted by the Ministry of Religious Affairs.This stance contrasts with the government's proposal or desire to keep the management of Hajj finances under the purview of the Ministry of Religious Affairs. 12he public's perception of the poor management of Hajj finances, with the dominant role of the Ministry of Religious Affairs, has been acknowledged and thoroughly examined by the Indonesian Parliament (DPR) and the government through the Ministry of Religious Affairs.The role and enthusiasm of the Indonesian Parliament, particularly through Commission VII, have been evident in the positive reception of government-initiated proposals through the Ministry of Religious Affairs. 13owever, there are some concerns regarding the Ministry of Religious Affairs in incorporating public aspirations into the Draft Law on Hajj Financial Management (RUU PKH).Despite the expectations that the Ministry of Religious Affairs would bring the public's aspirations for better management of Hajj finances and limitations on its central role, these expectations were not reflected in the proposed RUU PKH by the Ministry of Religious Affairs. 14he Ministry of Religious Affairs still proposed institutional management of Hajj finances to remain under its authority and only separated from the Directorate General of Hajj and Umrah.In the proposed RUU PKH, the Ministry of Religious Affairs suggested maintaining centralization in the organization of Hajj rituals, suggesting that the Hajj Fund be kept in the account of the Minister of Religious Affairs at the Central Bank.The appointment of BPS-BPIH and operational expenditures of BPKH were also determined by the Minister of Religious Affairs. 15he Parliament, as a legislative body, asserted its dominance in this matter.It perceived that the proposal was far from meeting the expectations of the public.Therefore, the Parliament did not agree with the government's proposal and decided to break the Ministry of Religious Affairs' dominance by replacing every mention of the Minister of Religious Affairs with BPKH, from the account name to the appointment of BPS-BPIH.
The democratic nature of the government was then demonstrated by supporting and approving the options proposed by the Indonesian Parliament.Both the government through the Ministry of Fund Management: An Overview," Asian Journal of Accounting and Finance 1, no. 1 (2019). 14  planning, and regulate the operational aspects of Hajj finances.This is counterproductive to its founding spirit, where BPKH is entrusted with the task of managing Hajj finances.BPKH should be given the authority to propose, consider in planning, and regulate the operational aspects of Hajj finances.

Disharmony and Overlapping Authority Between the Ministry of Religious Affairs and BPKH in Managing the Community Endowment Fund (DAU)
This section initiates the discourse by examining the evolving role of the Community Endowment Fund (DAU) in Hajj finance, delineating its evolution from the enactment of Law No. 17    3.

Classification of BPKH as an Independent State Institution
• Categorized as a Regulatory institution according to John Alder • Holds authority in regulatory and administrative Hajj financial management activities.

Triggers for BPKH Establishment
• Formed in response to public dissatisfaction, particularly among Hajj pilgrims • Reaction to chaotic governance and corruption in Hajj financial management.Table 5 highlights the key aspects of BPKH within the Indonesian state administration system.It covers BPKH's role and status, its legal basis, and its classification as an independent state institution.The table also discusses the factors leading to BPKH's establishment, its advantages and challenges, and the connections between BPKH and the Ministry of Religious Affairs.Lastly, it addresses the independence patterns of BPKH and concludes that while BPKH is designed as an independent body, structural and functional independence remains complex and conflicted.

Conclusion
The formation of BPKH has been a subject of considerable debate, with discussions centering around its legal status-whether it should function as an independent entity or operate under the Ministry of Religious Affairs.Despite initial proposals suggesting BPKH's inclusion as a sub-organization of the Ministry, the Parliament opted for its establishment as an independent institution, leading to both support and opposition. In of 1999 on the Organization of Hajj and Umrah to the implementation of Law No. 8 of 2019 on the Organization of Hajj and Umrah.While the definition of DAU has remained relatively consistent, its sources and placement within Hajj finance have undergone various transformations and differentiations, 23 as depicted in the subsequent table:

Table 1 .
Zainur Ridho, "PENGELOLAAN KEUANGAN DANA management is cited as successful, BPKH encounters debates over infrastructure investments, revealing the complexity of navigating financial strategies for Hajj funds. 5Factors Leading to UU PKH and Challenges Faced 2 AN Zain et al., "Implementation of the Use of DAU through the BPKH Benefit Program to Improve Hajj Services," Researchgate.Net 2, no. 2 (2022).3

Table 3 :
Key Issues in BPKH Research

Table 4 .
Comparative Analysis of Legal Provisions on the Management of Hajj Finances in Indonesia: A Focus on Laws No. 34/2014 and No. 8/2019

Table 4
23Zain et al., "Implementation of the Use of DAU through the BPKH Benefit Program to Improve Hajj Services."

Table 5 .
Key Aspects of BPKH in the Indonesian State Administration System terms of legal standing, Law No. 34 of 2014 on the Management of Hajj Financials serves as the foundational mandate for creating BPKH.This law paved the way for the issuance of subsequent regulations, including Presidential Regulation No. 110 of 2017 and Government Regulation No. 5 of 2018, solidifying BPKH's role in managing Hajj finances.As outlined in Article 2 of Presidential Regulation No. 110 of 2017, BPKH is established as a public legal entity, independent, and directly accountable to the President through the Minister.President Joko Widodo, in 2017, inaugurated seven Supervisory Board members and seven BPKH Executive Board members.However, despite its legal foundation, Law No. 34 of 2014 reveals points of disharmony with Law No. 8 of 2019 on the