Beyond tourism: Indonesian Ambassador Penny D. Herasati on Indonesia’s rise, EU ties and opportunities for Hungary – EXCLUSIVE INTERVIEW

Indonesia is often seen through the lens of tropical beaches and postcard-perfect sunsets, yet the world’s fourth-most populous country is rapidly emerging as a key economic and geopolitical player. In an exclusive interview with Daily News Hungary, Indonesia’s Ambassador to Hungary, Penny D. Herasati, speaks about moving beyond Bali and beyond stereotypes, from untapped travel destinations and cultural connections to strategic cooperation with Hungary in areas such as clean energy, digital innovation and electric vehicle supply chains.

Daily News Hungary (DNH): Your Excellency, what were your first impressions of Hungary, and what has surprised you the most since your arrival?

H. E. Penny D. Herasati: My first impression of Hungary was that it’s a country with an incredibly deep history and a unique cultural identity right in the heart of Central Europe. What surprised me most after arriving was how naturally Hungary blends tradition with modern life. I knew the country had a rich historical heritage, but I didn’t expect to see it so effortlessly woven into everyday routines.

Before coming here, I’d heard that Hungarians might seem a bit reserved at first especially in professional settings. And yes, they can come across as formal initially. But after spending some time here, I’ve learned that once you get to know them, they’re warm, sincere, and genuinely welcoming. Their straightforward way of communicating makes conversations honest and easy.

Budapest has also been a real highlight. I’d seen plenty of photos before, but experiencing the city in person is something totally different, the stunning architecture, the Danube running through the city, and its lively cultural scene are beautiful. 

Overall, Hungarians are open to dialogue and cooperation, which gives me a lot of confidence and excitement about what we’ll be able to achieve together during my time here.

DNH: Hungary is geographically far from Indonesia, yet many people here dream of visiting your country. What is your secret? Why should travellers choose Indonesia instead of a closer, for example, European destination?

H. E. Herasati: Indonesia offers a wide range of travel experiences, including warm weather throughout the year, diverse beaches, regional cuisines, and a rich cultural heritage. The country is known for its varied natural landscapes, as well as historical and architectural sites that reflect centuries of human civilisation. For example, visitors familiar with European landmarks such as Budapest’s St. Stephen’s Basilica may also appreciate Indonesia’s UNESCO World Heritage sites, including the Borobudur and Prambanan temples in Java.

Indonesia is also considered a cost-effective destination. With a budget of around USD 50 per day, travellers can often afford private accommodation, meals at reputable restaurants, and wellness services such as massages, even in popular destinations like Bali. In comparison, average daily travel expenses in Europe may cover multiple days of comfortable travel in Indonesia. Combined with a warm climate and well-known local hospitality, Indonesia presents an appealing option for European travellers seeking both cultural and leisure experiences.

DNH: Which Indonesian destinations would you recommend to Hungarian travellers who already know Jakarta and Bali, but are looking for something new and less well-known?

H. E. Herasati: Some of the most recommended prime destinations include Labuan Bajo, a paradise that offers a breathtaking view of a pink beach and a raw experience to see real living ancient dragons at the Komodo National Park. 

Another highly recommended destination is Wakatobi, the ultimate destination for snorkelers and divers who are seeking Indonesia’s purest underwater sanctuary, often called the ‘Amazon of the Ocean.’ 

For travellers who prefer the mountain to the seas, I would suggest trying the hike to Mount Bromo to experience a powerful, misty, and otherworldly sunrise over an active volcanic caldera. 

For another genuine experience of a local culture, I think Tanah Toraja would also be perfect. Over there, ancient traditions are an essential part of daily lives and not just performed for tourists. Like in the event of Rambu Solo (ancient ceremonies to honour the dead), travellers don’t buy tickets. They would instead have to hire a local guide who would ask the family for permission to attend the ceremony and be welcomed as a guest, seated with extended family members.

There are places that are still unfamiliar to foreign tourists, where infrastructures are not yet fully developed, waiting to be discovered by travellers. I would recommend travellers to come and visit these places before they become too touristic. 

DNH: How would you describe the relationship between the Hungarian and Indonesian governments? What are the main areas of political common ground?

H. E. Herasati: The relationship between Hungary and Indonesia is constructive and getting stronger every year. We’ve had 70 years of diplomatic ties, and over that time we’ve built a solid foundation of mutual respect and steady political cooperation.

You can see this in the regular exchange of high-level visits. Just last November, our Foreign Ministers met in Brussels to talk about boosting cooperation in important areas like digital infrastructure and food security. Parliamentary ties have also become an important part of the relationship, with delegations from both countries meeting to share ideas and strengthen understanding between our institutions. There are friendship committees in both parliaments. 

A recent example is the visit of Dr. Márta Mátrai, the First Deputy Speaker of the Hungarian National Assembly, who travelled to Indonesia earlier this month. She met with the Vice Chairman of the Indonesian Parliament and the Governor of Bali, highlighting how active and friendly our political exchanges have become.
Hungary and Indonesia maintain strong cooperation in multilateral forums, reflecting our shared commitment to global collaboration and multilateral diplomacy. At their core, both countries value stability, sovereignty, and a pragmatic approach to diplomacy that delivers tangible benefits to our peoples.

There’s still plenty of room for both sides to grow together not just at the government level, but also in culture, society, and people-to-people exchanges. We’re confident that the partnership will continue to expand in both depth and scope in the years ahead.

DNH: What are currently Indonesia’s most important mineral resources and natural assets, and which of these could be particularly interesting for Hungarian economic actors?

H. E. Herasati: Indonesia is often called “Emerald of the Equator” for good reason. The country are incredibly rich in biodiversity and minerals. 

Hungary has become a major hub for EV battery manufacturing in Europe, attracting large investments from Asian companies like CATL, Samsung SDI, and BYD, all producing various types of lithium-ion battery chemistries. Most of the EV car batteries manufactured or assembled in Hungary are exclusively lithium-ion batteries and utilize both nickel (specifically in nickel manganese cobalt, or NMC, formulations) and lithium iron phosphate (LFP) chemistries.

These many high-performance batteries manufactured by companies like Samsung SDI in Göd use cathode materials containing a mix of nickel, manganese, and cobalt (NMC). The high nickel content in these batteries helps provide greater energy density, which translates to a longer range for vehicles.

Indonesia holds the world’s largest reserves of nickel, which is the heart of those batteries. We invite Hungarian companies to come to Indonesia, build processing facilities, and be part of the value chain right at the source. It is a perfect match. 

Indonesia offers Special Economic Zones (SEZs) for industrial investors, such as Palu SEZ for the base metal industry, Sorong SEZ for the nickel smelter industry, and Galang Batang SEZ in Bintan, Riau Islands, for the bauxite industry. And there are fiscal and non-fiscal incentives available to investors in SEZs.

In addition to that, like Hungary, Indonesia sits on a “hotbed” of energy literally. There are immense potential for Hungarian engineers to work with Indonesia to harness the volcanic heat for clean electricity.  

The Indonesian government already have a comprehensive power development plan for the next decade, balancing rapid electricity demand growth with a strategic shift toward renewable energy one of which is through maximising the potential of geothermal energy.

DNH: Beyond raw materials, which service or technology sectors do you see as areas where Indonesia and Hungary could mutually benefit from closer cooperation?

H. E. Herasati: Raw materials remain important. However, Indonesia and Hungary have far greater potential in value-added services and technology-based cooperation. Both countries have dynamic modern economies, and the focus should now shift from extraction to innovation, skills, and long-term partnerships.

The Indonesian market offers strong opportunities for Hungarian companies, but success requires a well-prepared strategy. The Indonesian Embassy plays a practical role in helping companies navigate the market and identify sustainable entry points focusing on long-term cooperation rather than one-off transactions.

Four priority areas for closer cooperation to be considered:

a. Green Technology & Smart Cities

As Indonesia advances its energy transition and net-zero targets, Hungary’s technical expertise is highly relevant.

• Water Management Technologies
  Hungarian solutions in water purification, flood control, and smart irrigation support public health, food security, and sustainable urban development.
• Clean Energy & Smart Grids
  Hungary’s experience in geothermal energy, solar power, and smart grid systems aligns well with Indonesia’s clean energy ambitions.

b. Digital Economy, Startups & Innovation

Both countries have young populations and active startup ecosystems, creating strong potential for collaboration.

• Fintech & Cybersecurity
  Indonesia’s rapidly growing fintech sector can benefit from Hungary’s strengths in cybersecurity and digital protection.
• Talent Exchange & R&D Cooperation
  Expanded student exchanges, joint research programs, and shared tech incubators can connect talent in science, technology, and computer science.
• E-Government Solutions
  Joint development of digital public service platforms can improve efficiency, transparency, and accessibility.

c. Health & Wellness Sector

Indonesia is developing a Health and Wellness Special Economic Zone in Sanur, Bali. With Hungary’s advanced medical and health technologies, this creates concrete opportunities for Hungarian companies to establish local operations and collaborate in healthcare services, medical technology, and pharmaceuticals.

d. Indonesian Workforce for Hungary

Hungary’s growing foreign direct investment, especially in manufacturing, construction, logistics, business services, and EV and battery industries, has led to labour shortages.

Indonesia offers a ready and capable workforce. Hungarian employers consistently highlight Indonesian workers’ strong work ethic, adaptability, and positive workplace integration, making labour mobility another mutually beneficial area of cooperation.

By focusing on green technology, digital innovation, healthcare, and workforce cooperation, Indonesia and Hungary can build a deeper, more resilient partnership that delivers long-term economic value for both sides.

DNH: Do you see concrete opportunities for Hungarian companies in Indonesia? And what obstacles does a Hungarian company typically face when entering the Indonesian market, and in what ways can the Indonesian Embassy in Budapest assist them?

H. E. Herasati: Indonesian market is absolutely bursting with potential for Hungarian companies. The Embassy of Indonesia will be the personal guide for Hungarian companies to navigate that crazy-fast economy.

The focus should be on identifying strategic opportunities where Hungary’s technological strengths can collaborate with Indonesia’s development agenda, fostering sustainable and long-term economic partnerships. 

a. Concrete Opportunities for Hungarian Companies

There are at least four key sectors where Hungarian expertise is particularly well matched to Indonesia’s priorities

1. Water Management & Infrastructure
   Indonesia’s large population and urban growth drive strong demand for clean water supply, flood control, and wastewater treatment areas, where Hungarian companies have proven capabilities.
2. Electric Vehicles (EV) and Battery Ecosystems
   Indonesia is developing a major EV battery industry based on its nickel resources, which complements Hungary’s position as an EV manufacturing hub in Europe.
3. Digital Economy & Smart Cities
   Indonesia’s rapidly expanding digital sector and unicorn startups create demand for data centres, cybersecurity, fintech solutions, and smart city technologies.
4. Health & Wellness
   Indonesia is upgrading its healthcare system, including pharmaceutical production and hospital development. This cooperation is already progressing, as demonstrated by a recently signed MoU on health cooperation between Indonesian and Hungarian companies at the MEDICA exhibition in Germany.

b. Institutional and Financial Support

Both countries have strong institutional frameworks to support bilateral business expansion, such as:

• Hungary’s Exim Bank supports Hungarian companies in entering foreign markets.
• Indonesia Eximbank (LPEI) promotes Indonesian exports and international partnerships.
  These institutions can be leveraged jointly to facilitate market entry and project financing.

In addition, Danantara, Indonesia’s sovereign wealth fund, plays a strategic role by investing in priority sectors domestically and abroad. Its mission is to support long-term national development by partnering with international investors to bring capital, technology, and expertise into Indonesia.

c. Obstacles Might Be Faced by Hungarian Companies

There are common challenges where the Embassy can facilitate, including bureaucratic procedures, logistics issues, local rules, the people factor, and protecting your ideas. 

The Indonesian Embassy in Budapest is not merely a diplomatic mission; it serves as a key partner for economic and investment engagement. We encourage you to view the Embassy as a reliable point of contact, your “second office” in Indonesia. Beyond consular services, we facilitate access and opportunities. In close coordination with our trade office, we connect businesses with vetted local partners, helping to ensure informed and confident market entry. Should your company encounter regulatory challenges, the Embassy stands ready to assist in navigating relevant government institutions in Jakarta and in advancing the necessary processes.

DNH: How well do Indonesians know Hungary, and in your view, what could make our country even more attractive in the eyes of Indonesian tourists, students, or investors?

H. E. Herasati: Hungary is gaining attention among Indonesian travellers as an alternative to traditional Western European destinations. Budapest stands out for its historic architecture, cultural atmosphere, safety, and more affordable costs. A welcoming environment further adds to its appeal for Indonesian visitors looking for a unique European experience.

Hungary’s image in Indonesia is also shaped through people-to-people connections. Many Indonesians who come to Hungary are workers, and an increasing number also arrive as students. Their experiences help build awareness of Hungary, especially in terms of job opportunities, daily life, and the overall working environment.

Indonesian students often develop a very positive view of Hungary through its strong universities, respected scholars, and Nobel Prize legacy. The Stipendium Hungaricum scholarship has been especially important, giving young Indonesians valuable academic and cultural exposure that can strengthen future Hungary–Indonesia relations.

To attract Indonesian investors, Hungary could highlight its strengths in innovation and technology, especially in agriculture. With Indonesia focusing on food security and agricultural development, Hungary’s advanced Agri-technology offers clear opportunities for cooperation.

DNH: Which elements of Indonesian culture – such as music, dance, handicrafts, or religious diversity – would you most like to present to the Hungarian public here in Budapest?

H. E. Herasati: Culture is a cohesive package that must be appreciated as a whole, rather than broken down into elements. Hungarians are very keen about art and tradition and have the tendency to deeply appreciate the originality of a culture.  

Culture is also something of an experience and not merely as a show. That is why the Embassy offers a regular program of training in the traditional music and dance of Indonesia, and the Indonesian national language, all of which is open to the Hungarian public. In fact, we have two “Gamelan” groups whose players are almost all Hungarians. Apart from these two groups, we also have the Saman Ratoeh Jaroe Dance club, the Angklung ensemble, and other traditional dance groups who regularly rehearse at the Embassy.

DNH: We should not leave gastronomy out of our conversation. If you had to create a “dream menu” from Hungarian cuisine for an Indonesian guest, which starter–main course–dessert combination would be your personal favourites?

H. E. Herasati: Hungary has a splendid soup culture. We, in Indonesia, have a very strong soup tradition. Our culture recognises hundreds of different soups. I am certain one would resemble a Hungarian delicious soup, so it is not so difficult to start my dream menu with it. I shall start with the famous Hungarian fish soup, Halászlé, which is similar to “Sop Ikan” in Indonesia.

For the main course, I would go with the Chicken Parikash (Csirkepaprikas) as it resembles the “Gulai” in Indonesia; it has a rich sauce and carries that spicy paprika flavour. The typical hot paste in the Hungarian tradition, the “Erospista”, is also a typical traditional element of any Indonesian traditional cuisine called the “Sambal”. 

I have come to notice that the Hungarian Palacsinta is somewhat deliciously similar to our “Dadar Gulung”. So, for dessert, I would probably continue with two options: the Palacsinta or the famous Hungarian Sponge Cake.

DNH: What goals have you set for your mandate as ambassador in Budapest, particularly in the fields of tourism, education, and economic relations?

H. E. Herasati: My mandate has a clear focus: to strengthen bilateral relations between the two countries at all levels, including people-to-people connections, which align with President Prabowo Subianto’s priorities. I aim to make our relationship a model of innovation, high-tech cooperation, and genuine friendship, supporting Indonesia’s goal of becoming a major economic power.

I have set three main goals for our bilateral relations:

1. Economic Relations – Go High-Tech, Not Just Raw Goods

• Shift from raw goods trade to high-value investment and technology transfer, focusing on startups and small businesses.
• Support domestic development, especially by downstreaming raw materials into high-value goods.
• Leverage Indonesia’s critical resources (e.g., nickel) to attract investment in future industries like EV batteries.
• Diversify economic partners, expanding ties to countries like Hungary alongside major global powers.

2. Education – Build Our Future Workforce

• Expand the Stipendium Hungaricum program with a focus on Water Engineering, Green Technology, and Digital Sciences.
• Develop an alumni network of Indonesian students in Hungary to strengthen business and cultural ties.

3. Tourism & People-to-People – Discover Each Other

• Promote Indonesia beyond Bali, highlighting new Special Economic Zones and ecotourism to Hungarian visitors.
• Brand Hungary for Indonesians as a safe, culturally rich, and high-quality destination for tourism and education.

DNH: What would be your message to the readers of Daily News Hungary: why is it worth paying special attention to Indonesia now and in the coming years?

H. E. Herasati: Indonesia is not just a friendly smiling face of tourism. It is a rapidly evolving market set to become a global manufacturing base. There is a general consensus of reports (such as those by the World Economic Forum) stating that by 2050, Indonesia is projected to become the 4th Largest Economy in the World. Joining BRICS and potentially OECD is among Indonesia’s strategic moves to accelerate the forecast.  

Foreign investors, businesses, as well as governments alike may really want to pay close attention; otherwise, they will miss the chance to collaborate. As Indonesia develops really fast; everything is changing at a very rapid pace. Obviously, it will gradually get more competitive to do business in our country. The perfect time to invest is therefore now. 

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