JAKARTA – The Special Economic Zone (KEK) of Sei Mangkei in Simalungun regency, North Sumatra, is now being transformed into an epicentrum of downstream palm oil industries in Indonesia.

The special zone managed to attract investments of more than Rp6.5 trillion and pushed up exports of palm oil and derivative products with total value of Rp2.7 trillion until 2024.

Expert Staff in charge of regional development at the economic coordinating ministry, Haryo Limanseto said the development of Sei Mangkei has proven that the down-streaming program in palm oil industries is being seriously pursued to push up regional economy that will also help realize the target of national economic growth.

Sei Mangkei is also being strengthened with the KernelMax project, which is expected to attract additional investments of around Rp366 billion.

The project absorbs thousands of workers and is expected to increase the special zone’s capacity as the hub of palm oil industries.

Haryo emphasized that the success of down-streaming in Sei Mangkei should be supported by adequate infrastructure, ranging from energy, worker’s residence, and other supporting facilities.

Therefore, the government should integrate the economic zone with Kuala Tanjung seaport to ensure the efficient distribution of downstream products.

“The integration with international seaport will reduce logistic cost and expand global market access for Indonesia’s palm oil products,” Haryo said when making field trip to Sei Mangkei on Sunday (21/9/2025).

Totally, KEK in Indonesia saw a realization of cumulative investments of Rp294.4 trillion until the first semester 2025, with absorption of 187,000 workers. Prominent among the zones is Sei Mangkei, which is focused on processing of palm oil from upstream to downstream and functions as a strategic gate of trade in western Indonesia. (*)