Jakarta, INTI - The Indonesian government is strengthening energy infrastructure in the Sei Mangkei Special Economic Zone (SEZ) in Simalungun Regency, North Sumatra, to support sustainable investment and enhance the competitiveness of local industries in global markets.
Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said one of the key initiatives is the development of the Dumai–Sei Mangkei gas pipeline, valued at approximately Rp3.5 trillion.
“One of the initiatives is the construction of the Rp3.5 trillion Dumai–Sei Mangkei gas pipeline to ensure reliable energy supplies for industries,” Yuliot said during the inauguration of PT Unilever Oleochemical Indonesia’s expanded production operations at Sei Mangkei SEZ.
Government Strengthens Renewable Energy Supply
In addition to gas infrastructure, the government is strengthening renewable-based electricity supplies by accelerating the operation of the 510 MW Batang Toru Hydroelectric Power Plant (PLTA) in South Tapanuli Regency.
The government is also utilizing the 150 MW Asahan 3 Hydroelectric Power Plant in Asahan and Toba regencies, while optimizing North Sumatra’s geothermal potential.
Yuliot said these developments are expected to increase the share of renewable energy in North Sumatra’s energy mix to 30–40%, above the national average.
“With sufficient gas, renewable electricity, and raw materials within the same ecosystem at Sei Mangkei SEZ, the competitiveness of our industrial products in global markets will become significantly stronger,” he said.
Sei Mangkei SEZ Attracts US$1.87 Billion in Investment
Rizal Edwin Manansang, Secretary General of the National SEZ Council, said Sei Mangkei SEZ had attracted US$1.87 billion in cumulative investment from 29 businesses as of mid-2026.
The zone has also created approximately 16,000 jobs.
PT Unilever Oleochemical Indonesia serves as an anchor investor, with cumulative investment of US$52 million, excluding its latest expansion project.
“In the first half of 2026, exports from Unilever Oleochemical Indonesia reached US$403 million, contributing more than half of Sei Mangkei SEZ’s total exports of US$778 million,” Rizal said.
The contribution highlights the ability of Indonesia’s palm oil downstream industry to compete within global value chains.
Unilever Targets Up to US$800 Million in Exports
Unilever Chief Supply Chain Officer Willem Uijen expressed confidence in the future of sustainable manufacturing in Indonesia.
The overall operations of PT Unilever Oleochemical Indonesia are projected to ship up to 600,000 tons of oleochemical products to more than 30 countries, with potential export value reaching US$800 million.
“This fatty alcohol plant strengthens Indonesia’s position in producing high-value oleochemicals. The investment is not simply an expansion of production capacity, but also reflects our commitment to low-carbon manufacturing powered by circular bioenergy, while empowering local workers and communities,” Willem said.
Conclusion
The strengthening of energy infrastructure at Sei Mangkei SEZ highlights the government’s efforts to create a more reliable and sustainable industrial ecosystem. With expanded gas supplies, renewable electricity, and growing downstream investment, the region is positioned to enhance Indonesia’s industrial competitiveness and participation in global value chains.
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