Indonesia and Hungary plan USD 500m infrastructure fund

24 January 2020 - 12:00 am UTC

Indonesia and Hungary are planning to set up a USD 500m joint investment fund to tap opportunities in the transportation and water management sectors in the Asian country.

“The two countries will be contributing the resources equally, and the fund will be managed in Hungary,” Péter Szijjártó, Hungary´s foreign affairs and trade minister, was cited as saying in a report published by Hungary’s Ministry of Foreign Affairs and Trade yesterday.

Up to December 2019, Hungarian companies participated in 36 projects related to water management in Indonesia, according to another statement, released by the Indonesian cabinet.

In 2015, a joint venture formed by Budapest Waterworks and an Indonesian company won a project to build water treatment units in 34 different locations across the Indonesia provinces of Sumatra, Java and Sulawesi with a total value of USD 36.4m.

The Indonesian government has recently been pursuing a charm offensive to attract foreign capital to the country’s infrastructure projects, including the development of a new capital on the island of Borneo.

Last week, the country announced that the United Arab Emirates is planning to invest USD 22.8bn in Indonesia’s new infrastructure-focused sovereign wealth fund. Japan’s Softbank Group and the United States’ International Development Finance Corporation are also expected to support the vehicle.
Indonesia and Hungary are planning to set up a USD 500m joint investment fund to tap opportunities in the transportation and water management sectors in the Asian country.

“The two countries will be contributing the resources equally, and the fund will be managed in Hungary,” Péter Szijjártó, Hungary´s foreign affairs and trade minister, was cited as saying in a report published by Hungary’s Ministry of Foreign Affairs and Trade yesterday.

Up to December 2019, Hungarian companies participated in 36 projects related to water management in Indonesia, according to another statement, released by the Indonesian cabinet.

In 2015, a joint venture formed by Budapest Waterworks and an Indonesian company won a project to build water treatment units in 34 different locations across the Indonesia provinces of Sumatra, Java and Sulawesi with a total value of USD 36.4m.

The Indonesian government has recently been pursuing a charm offensive to attract foreign capital to the country’s infrastructure projects, including the development of a new capital on the island of Borneo.

Last week, the country announced that the United Arab Emirates is planning to invest USD 22.8bn in Indonesia’s new infrastructure-focused sovereign wealth fund. Japan’s Softbank Group and the United States’ International Development Finance Corporation are also expected to support the vehicle.

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