Government efforts to strengthen gas infrastructure have attracted further investment in Indonesia’s Special Economic Zones (SEZs). One such investor is PT Unilever Oleochemical Indonesia (UOI), which recently inaugurated the expansion of its production facility in the Sei Mangkei SEZ, Simalungun Regency, North Sumatra, on Wednesday, August 26, 2026. The expansion represents an investment of US$155 million, or approximately IDR 2.59 trillion. The facility produces fatty alcohol, a key raw material for the oleochemical industry that is used in a range of everyday consumer products.
“UOI’s expansion demonstrates that the Sei Mangkei SEZ has developed beyond being merely an investment location; it has become an industrial ecosystem that contributes to both regional and national economic growth,” said Rizal Edwin Manansang, Acting Secretary-General of the National SEZ Council, in a written statement on Thursday, August 27, 2026.
UOI is one of the anchor investors in the Sei Mangkei SEZ. As of 2026, the company’s cumulative investment in the area had reached approximately IDR 9.31 trillion. During the first half of 2026, UOI recorded exports of around IDR 7.14 trillion, accounting for more than 50% of total exports from businesses operating in the Sei Mangkei SEZ, which reached IDR 13.78 trillion during the same period.
UOI’s products, including fatty acids, glycerin, and soap noodles, have reached markets in 42 countries, including China, South Korea, and France. The company’s export performance highlights the strategic role of the Sei Mangkei SEZ in supporting Indonesia’s downstream industrialization and integration into global supply chains.
The National SEZ Council stated that the government would continue to foster a conducive investment climate by ensuring legal certainty, infrastructure support, and business convenience for investors operating in SEZs. Deputy Minister of Energy and Mineral Resources Yuliot Tanjung added that downstream industrial development must be supported by reliable infrastructure and sufficient energy supplies to improve regional industrial competitiveness. One of the government’s supporting initiatives is the planned expansion of the Dumai–Sei Mangkei gas pipeline network, with an estimated investment of approximately IDR 3.5 trillion.
“With adequate gas and electricity supplies, sufficient raw materials, and a strategic location, we can strengthen our competitiveness in the global market,” Yuliot said.
In addition to gas infrastructure, the government is continuing to increase electricity availability in North Sumatra through the development of renewable energy projects. Strengthening energy infrastructure is expected to support industrial operations and enhance the competitiveness of the Sei Mangkei SEZ as part of the global supply chain.
The UOI facility expansion follows the company’s 2024 groundbreaking for the KernelMax Project. The development is intended to increase production capacity, promote the downstream processing of domestic resources, and strengthen Unilever’s manufacturing capabilities in Indonesia. As of 2026, the Sei Mangkei SEZ had recorded cumulative investment of approximately IDR 33.15 trillion, involving 29 business entities and employing 16,191 workers.
August 27, 2026, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20260827093545-4-762619/ri-bangun-jargas-produsen-oleokimia-tambah-investasi-rp259-t-di-kek)