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Hungary, Indonesia set up USD 500 mln investment fund

Indonesia and Hungary will establish a USD 500 mln joint investment fund to support the participation of Hungarian companies in big Indonesian infrastructure investments in transport and water management in the coming years, Minister of Foreign Affairs Péter Szijjártó said after holding talks in Jakarta on Thursday.

From left: Indonesian Minister of National Development Planning Suharso Monoarfa, Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó, Indonesian Minister of Public Works and Public Housing Basuki Hadimuljono. Photo by MTI/Ministry of Foreign Affairs and Trade. 

Szijjártó told Hungarian news agency MTI by phone that both states would contribute to the fund in equal part, but it would be managed in Hungary.

Utilizing credit from Magyar Eximbank, Hungarian companies can participate in infrastructure investments in Indonesia worth USD 1.5 billion, he added.

Szijjártó noted that a Hungarian company is working on the rollout of an electronic toll system in Indonesia, and the Budapest Waterworks had completed a USD 36 mln water purification investment in the country.

Talks on a new, USD 150 mln tied-aid agreement involving outfitting three hospitals with oncology equipment are underway, while negotiations on Hungarian companiesʼ participation in the upgrade of three military hospitals are at an advanced stage, he added.

Szijjártó said Indonesiaʼs size presents Hungarian companies with the chance to generate large-scale revenue and to grow.

Szijjártó met with Indonesian foreign minister Retno Marsudi and other members of the Indonesian government as well as with business leaders in Jakarta.

Bilateral trade between Hungary and Indonesia is set to reach USD 200 mln, Szijjártó said.