Accountability in Hajj fund management in Indonesia

Abstract

Accountability in public bodies in Asia remains a delicate issue. A public organization is characterized by its extensive engagement with multiple stakeholders, bureaucratic interconnections, rigorous oversight, and the inclusion of political considerations in decision making processes. The establishment of BPKH (Hajj Fund Management Agency) as the new and only authorized management body responsible for managing Hajj operations in the country aimed to improve the quality of Hajj services for Indonesian Muslims. Nevertheless, the issue of public trust and its legitimacy must be addressed mainly due to the history of Hajj fund mismanagement in prior eras. This study developed an accountability based conceptual framework for BPKH to gain public legitimacy. A proper accountability arrangement is essential in ensuring that BPKH, as a public organization in the country, stays true to its ethos. The investigation was carried out through in depth interviews with BPKH insiders and relevant stakeholders and cross checked against published documents. The study discovered that the BPKH insiders valued the new reform, which they cultivated through accountable actions and adaptation to the changing social landscape. Despite the availability of public information provided by BPKH, the information gap in society has remained relatively unchanged. It was found that there are two perspectives in understanding the legitimacy of Hajj fund management in Indonesia. First, in terms of organizational legitimacy, an improved transparency of public information has resulted in improvements in the governance of Hajj fund administration. It demonstrated how BPKH is adjusting to the needs of stakeholders in order to be accountable for professional management as a response to organizational and environmental pressure. Second, the public legitimacy perspective reveals that the Hajj fund managers were not perceived as legitimate organizers. An unresponsive entity coupled with a rather indifferent, albeit almost ignorant, public attitude suggests a lack of public legitimacy. Despite a changed information communication approach through an improved presentation of financial figures, such accountability action was rather muted. It was not felt, especially by the stakeholders who are not closely related to BPKH's routine activities. Therefore, developing accountable systems to sustain the Hajj fund is inevitable. This includes a more equitable allocation of Hajj subsidies that includes a healthier proportion for the long term functioning of a healthy organization.