More technology-cooperation projects were reviewed at a two-day virtual business conference called HunindoTech 2.0 which was opened on Nov. 17 by Indonesian Foreign Minister Retno LP Marsudi and Industry Minister Agus Gumiwang Kartasasmita and Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto.

Ministers Retno and Agus pointed to the huge potentials of Indonesian digital economy as the Southeast Asian largest country has a promising digital ecosystem with a projected value of US$133 billion by 2025 with more than 2,100 startups.

Minister Szijjarto said Hungary, one of the fastest developing technology hubs in Europe, is strategically positioned to fulfill Indonesia’s technology needs in various fields such as fin-tech, med-tech and such infrastructure as transportation, water and telecommunications.

Two-way trade relations have expanded rapidly, especially over the past five years, to an annual level of $200 million, though they fell slightly in 2019. However, when it comes to services and joint business partnerships and projects the rate of expansion has been steadily very high.    

Hungarian geographical position makes it a strategic trading hub for Indonesia to cover the western and eastern Europe and the Balkans. In fact the Indonesian Trade Promotion Center in Budapest has increasingly been busy in managing trade deals for both countries.  

The following are just several of business cooperation projects.

In 2017 Budapest Waterworks together with their Indonesian partner Artha Envirotama developed clean water supply systems in 36 settlements in water scarcity areas throughout Indonesia under a $40 million project. Earlier in 2016, the State Electricity Company PLN procured of GE turbines worth $217 million manufactured in Hungary for use in its multiple gas-powered mobile power plant projects.

In 2017 vice president Jusuf Kalla handed over Indonesia’s first $7.5 million gamma irradiation plant (IGMP Serpong). And later a second unit for research and education purposes at the Atomic Energy College of the Indonesian National Nuclear Energy Agency (STTN-BATAN) was developed with the technology and expertise of the Hungarian Izotóp Kft.

The gamma irradiation process uses Cobalt 60 radiation to kill microorganisms on a variety of different products in a specially designed cell, mainly used to sterilize medical devices and food products, which would be hard to sterilize otherwise.

These facilities are especially important for such a vast archipelago country as Indonesia as the technology improves the safety and extends the shelf life of such fresh food produce as meat, fish and horticulture during transportation and export processes.

Until now Indonesian perishable produce only receive gamma irradiation at their arrival ports, but now due to the Hungarian technology this is available domestically for boosting food exports and increasing food security in Indonesia.

In 2018, state-owned telco firm PT Telkom Indonesia invested in the Hungarian fintech company Cellum and signed a strategic cooperation to develop advanced mobile payment platforms in Indonesia.

A consortium of Hungarian companies are making a feasibility study on multi-lane free flow (MLFF) electronic toll payment system for Indonesian highways and are hopeful to eventually win this project. Well-known Tungsram electronic company is gearing up to reenter the Indonesian market.

These are only few examples, but many Hungarian and Indonesian companies that represent a particularly high level of technology have achieved major success through cooperation.

The fast achievements in technology-cooperation certainly should also be attributed to the strong commitment of the leaders of the two countries to boost economic relations. Hungarian Prime Minister Viktor Orban visited Indonesia in January 2016 and January 2020 with the latter visit made to dedicate the 65th anniversary of Hungarian-Indonesian diplomatic relationships.

As Prime Minister Orbán pointed out in his recent letter to President Joko ‘Jokowi’ Widodo: “I am happy that in recent years political, economic and cultural relations between our countries have been given a new impetus, and I can reassure you that Hungary remains firmly committed to enhancing cooperation even during the present challenging times of the global pandemic."

It’s the impressive development of business cooperation based on a thriving technology transfer that prompted Prime Minister Orbán and President Jokowi decided in January to set up a $500 million joint investment fund for infrastructural investments in Indonesia, where the joint cooperation can implement their expertise.

I see even greater prospects for more Hungarian companies to provide various kinds of technology for Indonesia, in view of the increasingly global significance of the Southeast Asian region, of which Indonesia is the largest economy.

Hungary intensified its economic diplomacy in 2014 by transforming its foreign ministry into the Ministry of Foreign Affairs and Trade and established Export and Import Promotion Agency and Export-Import Bank under this ministry’s supervision.

Given the great business opportunities, the Hungarian embassy in Jakarta was strengthened with bigger staff resources in 2016, making it one of the largest in the region, dedicated mostly to economic and trade cooperation.

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The writer is ambassador of Hungary to Indonesia.