Indonesian Political, Business & Finance News

Evyap Invests US$130 Million in Sei Mangkei SEZ, Strengthening Palm Oil Downstream Industry

| | Source: ACHMADNURHIDAYAT.ID Translated from Indonesian | Investment
Evyap Invests US$130 Million in Sei Mangkei SEZ, Strengthening Palm Oil Downstream Industry
Image: ACHMADNURHIDAYAT.ID

Turkish company PT Evyap Sabun Indonesia has officially commenced operations at its production facility in the Sei Mangkei Special Economic Zone (SEZ) after completing an investment of approximately US$130 million. The grand opening ceremony for Evyap’s production facility was held on Thursday, 2 July 2026. The company stated that this investment is part of a strategy to increase production capacity and expand its international market reach. Acting Secretary General of the National SEZ Council, Rizal Edwin Manansang, described Evyap’s presence as proof of the successful development of SEZs in building a competitive industrial ecosystem through collaboration between the central government, regional governments, zone operators, and stakeholders. Evyap’s entry also strengthens the contribution of Foreign Direct Investment (FDI) in SEZs. Currently, FDI accounts for approximately 73% of total investment in special economic zones. From 2012 to the first quarter of 2026, realised investment in the Sei Mangkei SEZ reached Rp 31.8 trillion, creating 14,689 jobs. The zone is considered strategic due to its position on the Malacca Strait international trade route. The Evyap facility produces various oleochemical products, including fatty acids, glycerin, soap noodles, and finished products for the global market. The company stated that construction of the facility took approximately three years, beginning in March 2023. According to an official statement, the facility is supported by three production units with a combined capacity of 650,000 tonnes per year. Evyap Life Chemistry CEO Saw Lee Chyan stated that choosing the Sei Mangkei SEZ accelerated the facility construction process thanks to the conveniences available in the zone. Deputy for Strategic Investment Downstreaming at the Ministry of Investment and Downstreaming/BKPM, Heldy Satrya Putera, stated that Evyap’s investment is a strategic step to strengthen the national downstream industry and domestic supply chain. He added that the investment also creates quality jobs, develops domestic industrial capabilities, encourages technology transfer, strengthens domestic suppliers, and enhances Indonesia’s competitiveness in the global manufacturing value chain. In addition to downstreaming benefits, the Sei Mangkei SEZ is noted for its advantages, including the development of industrial clusters based on leading commodities, strong logistics connectivity, supportive investment policies and incentives, and the implementation of a green zone concept through the use of biomass and biogas energy.

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