North Sumatra Provincial Government Supports Unilever Expansion in Sei Mangkei SEZ
The Provincial Government of North Sumatra supports the expansion of fatty alcohol production by PT Unilever Oleochemical Indonesia at the Sei Mangkei Special Economic Zone in Simalungun Regency, North Sumatra.
“This US$155 million expansion is expected to broaden the absorption of local labour,” said Deputy Governor Surya after attending the inauguration of the operational development of PT Unilever Oleochemical Indonesia, which was also attended by Deputy Minister of Energy and Mineral Resources Yuliot Tanjung at the Sei Mangkei SEZ on Wednesday.
He added that the expansion is also expected to improve human resource competencies and strengthen partnerships with micro, small, and medium enterprises in North Sumatra.
Surya said that the success of investment in North Sumatra is not measured solely by the amount of capital entering or the high volume of production. The primary benchmark, he said, is the extent to which investment can drive improvements in the welfare of communities surrounding industrial areas.
“I hope this operational development will further open up opportunities for local workers, strengthen our human resource competencies, and expand partnerships with MSMEs,” he said.
The Deputy Governor also assessed that the involvement of local business actors, particularly MSMEs in North Sumatra, is crucial in building a resilient industrial ecosystem.
The North Sumatra Provincial Government continues to encourage PT Unilever Oleochemical Indonesia and other investors in the Sei Mangkei SEZ to provide broader opportunities for local suppliers and service providers as part of the global industrial supply chain.
“We also want large industries to grow together with the community. The involvement of MSMEs and local workers will ensure that the economic benefits of the Sei Mangkei SEZ are felt inclusively and equitably,” Surya stressed.
Unilever Chief Supply Chain Officer Willem Uijen stated that the company is optimistic about the future of sustainable manufacturing in Indonesia.
He said the overall operational facilities of PT Unilever Oleochemical Indonesia are now projected to be capable of shipping up to 600,000 tonnes of oleochemical products to more than 30 countries, with potential export value reaching US$800 million.
“This fatty alcohol plant strengthens Indonesia’s production of high-value oleochemicals. This investment is not merely an expansion of production capacity, but also our dedication to low-carbon manufacturing based on circular bio-energy, as well as a commitment to empowering the local workforce and community,” Willem said.