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Jan 24, 2020

FM: Hungary and Indonesia to set up USD 500 million investment fund

Péter Szijjártó said that despite the significant distance between the two countries, ties between Hungary and Indonesia have developed considerably in recent years.

The foreign minister has announced that Indonesia and Hungary will set up a USD 500 million investment fund to facilitate Hungarian companies’ participation in the development of transport and water management infrastructure.

Following talks with his counterpart Retno Marsudi, other government officials and businesspeople in Indonesia, Péter Szijjártó said that despite the significant distance between the two countries, ties between Hungary and Indonesia have developed considerably in recent years.

According to MTI, several Hungarian technology companies have acquired significant market shares in the south-east Asian country, which can boost their income and development potential.

The minister said companies offering advanced technology and high value-added fared especially well in Indonesia. He noted that a Hungarian company was in charge of the introduction of the e-toll system in Indonesia and the Budapest Waterworks has carried out a water treatment investment for USD 36 million.

Consultations have started on a new USD 150 million tied aid credit program which will involve the installation of Hungarian-made oncology equipment in three public hospitals. Talks are also at an advanced stage on the modernization of three military hospitals by Hungarian companies.

The minister said Indonesia plans to implement large infrastructure development schemes in the next few years.

The joint investment fund will be set up with equal contributions by the two sides and will be managed in Hungary. With the use of the Eximbank credit, Hungarian companies have a chance to be involved in some USD 1.5 billion worth of infrastructure development.

The strengthening of economic ties is demonstrated by the development of trade between the two countries, with turnover totaling an annual USD 200 million. The government will also increase the number of Indonesian students on scholarship in Hungary to 100. 

Photo credit: 24.hu