Hungary vies for projects in Indonesia

Hungary vies for projects in Indonesia

Endy M. Bayuni, The Jakarta Post, Jakarta

Hungary is vying for economic projects in Indonesia as a way of
enhancing relations between the two countries, with sectors such
as the construction of roads, bridges and railways, and
information technology (IT) and automotive parts featuring
prominently on its wish list.

Janos Koka, Hungarian minister of economy and transportation,
wound up on Tuesday a two-day visit to Indonesia to explore
business opportunities here through a series of talks with senior
Indonesian officials and business leaders.

"We're not a capital exporting country," Koka said at a
breakfast meeting at the Shangri-La Hotel when asked about the
prospect of Hungarian investment in Indonesia.

Hungary, a country of 10 million people, is not looking for
large-scale investments in Indonesia, he said. "We are looking at
economic development projects where we can help and participate."

He cited the IT sector, including the development of IT for
education, as one area where Hungary could help Indonesia.

Koka came well prepared. His delegation includes a
representative from the Hungary Exim Bank, which would provide
credit financing, through a cooperation with Indonesia's Bank
Mandiri, for Hungarian exports to cash-strapped Indonesia.

Koka is well versed in the IT sector. A medical doctor by
training, he ran his own IT company in Hungary for 10 years until
he was recruited to the Cabinet in September.

At 32, he is the youngest member of the Cabinet. A self-made
millionaire (the Hungarian Menedzser Magazin said last year he
was worth 10.9 million euros), Koka said relations between
Indonesia and Hungary were best enhanced through economic and
trade diplomacy.

"I am the sales and marketing representative of the Republic
of Hungary," he proclaimed.

Many Hungarian companies that had operations in Indonesia left
the country in the wake of the Asian financial crisis in 1998.
The two countries are now working to rebuild economic ties.
Currently, total direct trade between the countries amounts to
about $250 million a year.

About the only Hungarian corporate presence in Indonesia today
is an IT company operating out of Batam.

During his two-day visit here, Koka held meetings with
ministers Aburizal Bakrie (economy), Mari Pangestu (trade) and
Sofyan Djalil (communications and information), and with Ismet
Abdullah (governor of the Riau Islands which oversees Batam) and
Miranda Gultom (deputy governor of the central bank).

Koka has some familiarity with Indonesia, having chaired the
Indonesia-Hungary joint business council in Budapest in the past.

He organized a charity dinner early this year to raise funds
for the victims of the tsunami in Aceh, an event eagerly
supported by Hungarian businesspeople, Koka recalled.

It was his familiarity with Indonesia that led Koka to place
Indonesia among six countries where his "economic diplomacy"
would be focused, along with Japan, China, Russia, the United
States and the Balkan states.

European countries are not included because Hungary is now a
full-fledged member of the European Union. India, in spite of its
rapid growth, is seen more as a competitor because it specializes
in areas where Hungary is also focusing, such as IT and
biotechnology.

But in Indonesia, Koka said, he saw potential for Hungary's
participation because the country was still in the early stages
of development.

"Indonesia is a land of great opportunities," he said.