Hungarian Prime Minister to visit Indonesia to boost trade ties

Veeramalla Anjaiah The Jakarta Post/Jakarta

Hungary's Prime Minister Ferenc Gyurcsany will arrive in Jakarta on Saturday for a three-day state visit to boost ties with Indonesia, Hungary's Ambassador Gyorgy Busztin said in Jakarta.

"The main aim of the visit is to strengthen the relations -- especially trade ties -- between Hungary and Indonesia. Our prime minister is bringing a 25-member business delegation with him. The business delegation is expected to clinch several business deals with Indonesian businesspeople," Hungarian Ambassador Busztin told The Jakarta Post on Friday.

Busztin said Gyurcsany and his entourage would arrive in Jakarta on Saturday evening. On Sunday, the prime minister will leave for Yogyakarta, the cradle of Javanese culture, to meet Yogyakarta Sultan Hemangkubuwono X.

Gyurcsany will be received by Indonesian President Susilo Bambang Yudhoyono at the State Palace in Jakarta on Monday. Susilo will host a state banquet on Monday evening in honor of the prime minister.

During his stay in Jakarta, Gyurcsany will meet House of Representatives Speaker Agung Laksono and People's Consultative Assembly Speaker Hidayat Nurwahid. He will also meet the chairman of the Regional Representatives Council, Ginandjar Kartasasmita.

There is another dimension to Gyurcsany's visit.

"This year, we are commemorating 50 years since the establishment of diplomatic relations with Indonesia," Busztin said.

Hungary, a Central European nation with a population of 10 million, is a member of the European Union. Indonesian businesses could use Hungary as an entry point to the heart of Europe because it is a gateway to several Central and Eastern European countries.

Bilateral trade between Indonesia and Hungary has been growing at a tremendous pace.

"Our bilateral trade with Indonesia increased to US$180 million in 2004 from a mere $39.10 million in 2000. That is over a 400 percent increase." said the Hungarian Embassy's economic counselor, Andras Hrabovszki.

But according to Busztin, a huge portion of the two countries' trade is being conducted through third countries.

"According to estimates, last year the total trade value of this indirect trade between Hungary and Indonesia reached almost $200 million," Busztin said.

Indonesia mainly exports information technology products, electronic appliances, garments, shoes, coffee, rubber and furniture to Hungary, and imports information technology software, power generation equipment and pharmaceutical items.

The Hungarian delegation is expected to sign several agreements and memorandums of understanding, including an economic cooperation agreement and a memorandum of understanding on tourism, during the visit, Hrabovszki said.