Transforming hajj financial management in Indonesia: An integrated SSM-AHP approach

This study examines the current challenges and strategic alternatives for developing strategies to improve Hajj fund management in Indonesia using Soft Systems Methodology (SSM) and Analytic Hierarchy Process (AHP). The research focuses on challenges faced by the Hajj Financial Management Agency (BPKH) in managing pilgrimage funds within a complex ecosystem of stakeholders and regulators. Through focus group discussions and quantitative analysis, the study identifies gaps in governance and institutional coordination following the transfer of fund management from the Ministry of Religious Affairs to BPKH. The research evaluates key strategies including investment policy development, internal control enhancement, leadership competency improvement, and technology adoption. Findings emphasize the need for a coordinating body to oversee investment policies and partnerships, while prioritizing public accountability and digital transformation to streamline processes. The study contributes to Islamic finance literature by providing insights into BPKH's specific challenges and optimization strategies. Recommendations include aligning investments with Islamic principles, strengthening controls against fund misuse, and prioritizing leadership competency in financial expertise and ethical integrity. These findings offer practical guidance for policymakers and Hajj fund management institutions in enhancing fund stewardship within Islamic finance principles.