Hungary offers access to European marts

Hungary offers access to European marts

JAKARTA (JP): Hungary yesterday offered itself as a gateway
for Indonesian exports to European markets, stressing that its
location in Central Europe makes it a perfect entry point.

The offer was made during a meeting between Hungarian
President Arpad Goncz and his Indonesian counterpart Soeharto at
the Merdeka Palace yesterday.

Minister/State Secretary Moerdiono in briefing reporters about
the meeting said that Goncz pointed out during the meeting that
Hungary is now in the process of joining the European Union.

As a would-be member, all products it exports to members of
the European Union would be exempt from import duty provided that
at least 50 percent of the product's contents are produced
locally in Hungary, Goncz said.

He proposed that Indonesian companies set up joint ventures in
Hungary to take advantage of this situation, according to
Moerdiono. Furniture and garments are among the products that
could be produced and sold this way.

Goncz agreed that Hungarian firms will establish similar joint
ventures in Indonesia to produce goods in which his country
excels, including pharmaceuticals, the automotive industry,
particularly buses and agriculture machinery. These products also
have market potentials in Asia.

Goncz also offered Hungarian services in helping to promote
small scale businesses in Indonesia and offered scholarships for
Indonesians to study at Hungarian universities.

Later at a press conference, Goncz, who is the first
democratically elected Hungarian president since the end of
communist rule, stressed that there is no going back to the old
system for his country.

Priority

Although Budapest is putting priority on establishing ties
with its European neighbors, it also hopes to forge good
relations with countries outside the region, including Indonesia.

To underline the seriousness of his intention, he pointed to
the presence of 40 entrepreneurs in his delegation to Indonesia.
"I did not come empty handed," he said.

These entrepreneurs have been involved in no less than 200
negotiations.Two agreements were signed during his stay in
Indonesia, one on aviation and another on central bank
cooperation.

The memorandum of understanding on air aviation allows the
Hungarian airline to fly to the holiday island of Bali, where the
president spent his weekend before beginning his two-day state
visit in Jakarta on Monday.

Bank Indonesia and the National Bank of Hungary yesterday
signed an agreement calling on both parties to facilitate trade
and investments between the two countries.

The agreement was signed by Bank Indonesia director Paul
Soetopo Tjokronegoro and chief representative of the National
Bank of Hungary Gyorgy Szelenyi at Bank Indonesia's headquarters
yesterday.

Indonesia in 1993 imported $16 million worth of goods from
Hungary and exported $11 million. Indonesian exports consist
mainly of coffee, rubber, pepper, tin and plywood while its
imports include plastics, pharmaceuticals and machineries.
(emb/fhp/icn)