PALMOILMAGAZINE, NORTH SUMATRA — The Indonesian government is intensifying efforts to develop Special Economic Zones (SEZs) as engines for downstream industrial expansion, export growth, and the creation of new economic hubs that generate employment and boost national competitiveness.
As part of this initiative, the Coordinating Ministry for Economic Affairs held a discussion and field visit to the Sei Mangkei SEZ and Kuala Tanjung Port on Saturday (20/9), aimed at ensuring seamless integration between the industrial zone and international trade infrastructure.
“We hope that the progress of SEZs and the increasing flow of investment in North Sumatra will significantly support regional economic development, which in turn contributes to achieving national growth targets,” said Haryo Limanseto, Senior Advisor for Regional Development at the Coordinating Ministry for Economic Affairs, as quoted by Palmoilmagazine.com, Tuesday (23/9/2025).
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Today, Sei Mangkei SEZ has emerged as a major hub for palm oil downstream industries, with total investments reaching IDR 6.5 trillion. By 2024, the zone recorded downstream palm oil exports worth IDR 2.7 trillion. Further expansion — including the KernelMax project — is expected to attract an additional USD 20 million in investment and create around 9,600 new jobs.
The government emphasizes that the success of SEZs should not be measured solely by investment and export figures but also by their direct benefits to local communities, such as job creation and skills development. Infrastructure support — including energy supply, housing, and proper living facilities for workers — remains crucial to maximizing the zone’s impact.
Aligned with this vision, Kuala Tanjung Port is set to become a key international logistics hub fully integrated with Sei Mangkei SEZ. This integration will streamline goods movement, reduce logistics costs, and broaden market access for Indonesia’s downstream products, particularly palm oil derivatives.
As of the first half of 2025, SEZs across Indonesia have attracted a total investment of IDR 294.4 trillion, creating 187,000 jobs. The contribution of Sei Mangkei and Kuala Tanjung is expected to further strengthen Indonesia’s position in global value chains, while promoting inclusive and sustainable economic growth.
The visit was attended by key stakeholders including Elfi Haris, Head Administrator of Sei Mangkei SEZ; M. Rafik, Head of Facilities at the North Sumatra Regional Customs Office; Agus Sujendro, Head of Kuala Tanjung Customs; Miswarinda, Corporate Secretary of PT KINRA; and other representatives from relevant institutions. (P2)
