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)