ABSTRACT : Indonesia Hajj Fund Management Agency: Badan Pengelola Keuangan Haji (BPKH) is responsible for receiving, managing, and disbursing the Hajj funds. The increase in Hajj costs, which has risen from IDR 35.24 million to IDR 56.04 million since 2019, has become a sensitive issue. This hike has led to accusations of budget mismanagement and inefficient use of Hajj fund investments, causing a “reputation crisis” for BPKH. To address this, BPKH must assess its performance. Implementing a Performance Management System (PMS) is an effective solution. This study uses the Knowledge-Based Performance Management System (KBPMS) framework to evaluate Key Performance Indicators (KPIs) in government agencies, aiming to improve the management of rising Hajj costs. This study also benchmarked with Malaysia, where Malaysia is one of the countries in Asia that also has the largest Hajj followers, so the resulting PMS can be better assessed. From this study, it was found that the increase in hajj funds can be overcome if BPKH responds to the crisis appropriately and uses better KPIs than before.

KEYWORDS – Increase in Hajj Fund, Indonesia Hajj Fund Management (BPKH), Key Performance indicators (KPIs), Knowledge-Based Performance Management System (KBPMS)