Principal launches Principal Haji Muda—The first Hajj planning mutual fund solution in Indonesia
Jakarta, Oct 25 , 2021 –PT Principal Asset Management (Principal) launches Principal Haji Muda, the first-of-its-kind, Hajj planning mutual fund solution in Indonesia today. The Principal Haji Muda solution can be accessed through Principal ID app. Both the solution and the app are supervised under Otoritas Jasa Keuangan (OJK) and are fully supported by Badan Pengelola Keuangan Haji (BPKH). This investment scheme for Hajj planning is in compliance with the sharia investment guidelines and can help fulfil young Indonesian Muslims in raising initial funds to reserve their seats for pilgrimage at a younger age.
A research conducted by Principal to 426 respondents found that, 80% of Indonesians plan to perform Hajj, and 70% of them aim to fulfil their plan while they’re still young, provided they have sufficient funds. Currently, most Indonesians are able to save enough funds for pilgrimage at a much older age. However, most of them are not able to realise their plan although they may have sufficient fund due to health reasons, or other family commitments.
“Badan Pengelola Keuangan Haji (BPKH) fully supports the movement of Ayo Haji Muda, where this moral movement has an aim to build the awareness of prioritizing Hajj pilgrimage and preparing it as soon as possible. As we all know, most people register their Hajj pilgrimage at the age of above 40 years old. The long waiting time brings a challenge for people to perform Hajj at the age of below 60 years old, while Hajj pilgrimage is a religious ritual that requires strong physical condition. is proud to partner with Principal to bring this innovative and accessible Hajj savings solution to Indonesians,” said A Iskandar Zulkarnain SE, MM, a member of BPKH’s management. “Hopefully by making it easier to plan and collect the initial budget for their Hajj journey, we believe that more Indonesians will be able to participate in the Hajj pilgrimage at a productive age.”
“Principal understands the importance for Indonesians to be able to save enough money to perform their pilgrimage,” said Fadlul Imansyah, director of Shariah investment management, PT Principal Asset Management. “We are proud to leverage on our global investment expertise, combining it with our knowledge and experience in Shariah investment to provide new investment solutions to help customers confidently collect the budget and achieve their aspiration to perform Hajj.”
Dato’ Paduka Syed Mashafuddin Bin Syed Badarudin, chief executive officer, Principal Islamic Asset Management and head of Islamic business, Principal Group said, “Our purpose is to foster a world where financial security is accessible to everyone, through inclusive investment solutions and digital transformation efforts.” He added, “The pandemic has accelerated our digital transformation journey, and through collaboration with strategic partners, we’re able to offer Shariah-compliant investment solutions to cater to Muslim and non-Muslim customers’ financial needs”.
Iggi Achsien, General Secretary of Masyarakat Ekonomi Syariah stated that “We really welcome the good initiative from Principal Asset Management in creating an innovation that open the opportunity for Indonesians to achieve their aspiration in life, including Hajj pilgrimage.” He added, “This program should be supported together, and we hope that from this program, there could be a sustainable movement to increase Indonesians’ awareness and ability in improving their financial literacy.
To socialize the importance of collecting Hajj budget during productive age and introducing Principal Haji Muda program as one of the tools to achieve the aspiration, Principal will collaborate with BPKH and MES to socialize these matters to communities and universities in Indonesia. With this socialization, we hope that young Moslems in Indonesia could be more optimistic to collecting their Hajj budget as soon as possible.
To find out more about Principal Haji Muda, please visit https://www.principal.co.id/en/principal-haji-muda-faq
To learn more about how Principal helps customers plan and achieve their financial goals, visit www.principal.co.id.
About Principal Financial Group®
Principal Financial Group® (Nasdaq: PFG) is a global financial company with 18,000 employees[1] passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 45.5 million customers[2] plan, insure, invest, and retire, while working to support the communities where we do business, improve our planet, and build a diverse, inclusive workforce. Principal® is proud to be recognized as one of the World’s Most Ethical Companies[3], a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management[4].” Learn more about Principal and our commitment to sustainability, inclusion, and purpose at principal.com.
[1] As of June 30, 2021.
[2] As of June 30, 2021.
[3] Ethisphere Institute, 2021.
[4] Pensions & Investments, 2020.
About PT Principal Asset Management
PT Principal Asset Management (formerly known as PT CIMB-Principal Asset Management), is a joint venture between Principal Financial Group®, a member of the FORTUNE 500® and a Nasdaq-listed global financial services and CIMB Group Holdings Berhad, one of Southeast Asia’s leading universal banking groups.
The company serves over 25,000 investors in Indonesia and has IDR 5.6 trillion in Asset Under Management as of August 2021. We offer a wide variety of solutions to help people and companies in building, protecting, and advancing their financial well-being with our discretionary mandates and asset management expertise.
With innovative ideas and real-life solutions, the company helps achieving financial progress towards a more secure financial future possible for clients of all income and portfolio sizes.
PT Principal Asset Management has obtained a business license from Capital Market Supervisory Board/BAPEPAM (now Financial Services Authority/ OJK) as an Investment Manager based on the Decree of the Chairman of BAPEPAM Number: KEP-05 / PM / MI / 1997 dated May 7, 1997.
About Badan Pengelola Keuangan Haji (BPKH)
Badan Pengelola Keuangan Haji was formed as an organization that manages Hajj finance in Indonesia. BPKH is the public legal entity that is independent and directly responsible to the President of Republic of Indonesia. BPKH was formed based on Law No. 34 of 2014 concerning Hajj finance management and Presidential Regulation (Perpres) Number 110 of 2017 concerning BPKH.
For the last 3 years under the management of BPKH, hajj fund has increased above the average of Sharia financial institutions, providing liquid funds for more than 2 times of Hajj season, support the Hajj pilgrimage trip support, allocate the value of benefits to people who are in the waiting period, and organize benefit programs.
In its journey, BPKH conducts Hajj financial management based on Sharia principles, the principle of prudence, benefits, non-profit, transparency and accountable. Hajj Financial Management aims to improve the quality of Hajj Implementation, rationality, and efficiency in the use of Hajj travel costs and benefits for the benefit of Muslims.
About Masyarakat Ekonomi Syariah (MES)
Masyarakat Ekonomi Syariah (MES) is a non-profit organization that aims to develop and ground the Sharia economic system as an economic system that is fair and based on sharia principles. The nature of MES is to become a forum that is recognized as a reference and followed as an example for efforts to accelerate the development and implementation of an economic system and Sharia business ethics in Indonesia, independent, not a government organization (non-government organization), and not a political organization or part of it.
MES was founded on 1 Muharram 1422 H, coinciding with March 26, 2001, and declared on 2 Muharram 1422 H in Jakarta. Until now, MES has become an inclusive forum to gather all existing resources and build synergies between stakeholders in order to build and develop the sharia economy. To date, MES has been established in 14 countries (Special Regional Administrators), 29 Provinces (Regional Administrators) and 104 Regencies/Cities (Regional Administrators). Therefore, MES is a very strategic partner for stakeholders in developing the Islamic economy and finance to all corners of the archipelago.
