Indonesia has pitched the Batang Integrated Estate and Health Special Economic Zone (Batang SEZ) as a new “ready now” investment destination for Hungarian companies, at a Business Forum held at the Novotel Danube in Budapest.
The event brought together 35 Hungarian investors, industrial associations and technology firms, as Indonesia marked more than 70 years of bilateral relations with Hungary and encouraged a shift towards strategic cooperation in high-tech manufacturing, pharmaceuticals, automotive parts and green energy.
Organisers said the forum was designed to move beyond goodwill and formal ties towards concrete business matchmaking and near-term projects, with institutional partners on both sides outlining support mechanisms for market entry, regulatory compliance and financing.
Batang SEZ and Bali healthcare zone highlighted as “two key opportunities”
Indonesia’s Ambassador to Hungary, Herasati Penny, told participants the forum would focus on two specific opportunities: an industrial “plug-and-play” manufacturing hub in Central Java and a healthcare-focused special economic zone in Bali.
At today’s forum, we will highlight at least two key opportunities. The first is the Batang Industrial Special Economic Zone, a plug-and-play manufacturing hub in Central Java. Batang is ready for business today: the land, infrastructure, and utilities are already in place, allowing investors to move quickly from planning to production. The zone offers excellent logistics, with strong connections to major toll roads, railways, and seaports. It is particularly well suited for sectors such as electronics, automotive manufacturing, and pharmaceuticals.
“The second opportunity is the Healthcare Special Economic Zone in Sanur, Bali, which represents the future of wellness and medical tourism. In Sanur, Indonesia is combining world-class healthcare with its internationally renowned hospitality sector. For investors, the government has introduced practical incentives. It is now easier to import medical equipment, and foreign medical experts can practice under more flexible conditions.”
This is where we can serve as your bridge… the Embassy of Indonesia is here in Budapest to support you directly. We can connect you with Indonesian ministries, help you understand the rules and regulations, and support site visits and business matching.
The ambassador also noted that the programme would begin with the signing of an agreement, either a Memorandum of Understanding or a Letter of Intent, describing it as an encouraging signal of momentum after the forum.
What the Batang SEZ offers investors
Presentations framed the Batang SEZ as a large-scale, industrial “industropolis” designed to reduce friction for incoming manufacturers. The zone covers 4,300 hectares, has secured USD 1.3 billion in initial investment, and has created around 11,000 direct jobs, with employment projected to reach 200,000 by 2040.
Speakers also highlighted what they described as legal continuity for long-term projects, saying the Batang SEZ has been formally approved under Government Regulation (PP) No. 12 of 2025, ensuring project continuity.
Sustainability and “future-proofing” were emphasised as part of the zone’s ESG roadmap, including plans for solar power plants, seawater desalination, and plug-and-play manufacturing capabilities intended to shorten the time from planning to production.
Macroeconomic pitch: downstream industrial policy and green transition
Beyond the site-specific offer, the Indonesian delegation presented macroeconomic indicators and national policy priorities intended to reassure European investors. Indonesia reported strong GDP growth, unemployment below 4.7%, poverty at 8.2%, and inflation reduced to 2.5%.
A key policy theme was the government’s push towards industrial “downstreaming” – shifting value creation inside Indonesia by halting raw mineral exports and prioritising 18 downstream projects, including smelters and manufacturing linked to EV batteries and solar panels, backed by fiscal and non-fiscal incentives.
Officials also said European foreign direct investment in Indonesia currently stands at USD 17.7 billion, and that new capital is being steered into nine priority sectors, with a strong focus on the green energy transition. Indonesia, they added, operates 25 strategic SEZs, with 18 located outside Java as part of wider regional development goals.
For foreign readers: what an SEZ is
A special economic zone (SEZ) is a designated area where governments offer tailored regulations, incentives and infrastructure to attract investment. SEZ frameworks typically aim to reduce administrative barriers and accelerate industrial development in targeted sectors.
Hungarian institutions signal intent to turn diplomacy into deals
On the Hungarian side, institutional partners emphasised business conversion: taking long-standing diplomatic ties and translating them into projects and contracts.
The Indonesian Embassy offered direct support for Hungarian firms, including coordination, regulatory compliance guidance and business matching. HEPA (the Hungarian Export Promotion Agency) said it sees strong alignment between Batang’s infrastructure ambitions and Hungarian expertise in industrial technologies and smart-city solutions.
HEPA CEO Katalin Bihari told the forum: “Hungarian companies will have the opportunity to gain deeper insight into Indonesia’s special economic zones and explore concrete, tangible business opportunities with Indonesian partners.” She also pointed to the expected impact of the EU–Indonesia Comprehensive Economic Partnership Agreement (CEPA), which she said could open new opportunities once it enters into force, including broad tariff elimination.
The Hungarian Water Partnership (HWP) presented water-related solutions – including UN-certified technologies and desalination know-how – and noted export-financing avenues via the Hungarian EXIM Bank.
Next steps: Batang’s rapid growth and immediate infrastructure demand
The forum concluded with discussion of Batang’s longer-term growth trajectory: managing the zone’s development into a fast-expanding urban-industrial centre expected to reach around 250,000 residents within the next two decades. Speakers said this demographic surge will create immediate demand for industrial water recycling, commercial infrastructure, and four-to-five-storey worker housing projects targeted at stable rental yields.
To accelerate these plans, a representative of the Hungarian Chamber of Commerce committed to connecting Batang’s management with major European contractor networks and proposed exploring a joint, government-backed co-funding framework, modelled on Indonesia’s established bilateral programmes with the Netherlands.
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