The Government of the Republic of Hungary and the Government of the Republic of Indonesia/hereinafter referred to as "Contracting Parties";

Bearing in mind the friendly and co-operative relations existing between the two countries and their peoples;

Intending to create favorable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party on the basis of mutual benefit; and

Recognizing that the promotion and protection of such investments will be conducive to the stimulation of individual business initiative and to foster prosperity in both countries;

Have agreed as follows: