Encourage Regional Economy, Government Ensures Optimal Integration Of Industrial Estates And Logistics Chains

Visits to the Sei Mangkei SEZ and Kuala Tanjung Port in North Sumatra (doc the Coordinating Ministry for the Economy)

JAKARTA - The Development of Special Economic Zones (SEZs) continues to be encouraged by the Government to accelerate industrial downstreaming, increase exports, and open growth centers that strengthen national competitiveness while providing jobs for the community.

In this framework, the Government conducts discussions as well as field visits to the Sei Mangkei SEZ and the Kuala Tanjung Port in North Sumatra to ensure that industrial estate integration with international ports runs optimally.

"We really hope that the development of SEZs and investments in the North Sumatra region can support the regional economy, which in turn can support the national economic growth target," said Expert Staff for Regional Development at the Coordinating Ministry for the Economy Haryo Limanseto, quoted on Sunday, September 21.

He said that absorbing an investment of IDR 6.5 trillion, SEZ Sei Mangkei itself has developed as a center for downstream oil palm with and is able to record exports of IDR 2.7 trillion until 2024.

Haryo added that the expansion of the area, which is carried out through the KernelMax project, is projected to bring in additional investments of around US$20 million and has absorbed around 9,600 workers.

He conveyed that the various achievements that have been achieved are proof that the Sei Mangkei SEZ is not only able to support the increase in exports and investments, but also provides direct benefits for the community through job creation and skill improvement.

In addition, Haryo also emphasized that the importance of supporting infrastructure support so that the Sei Mangkei SEZ can develop more optimally.

"The availability of energy, housing, as well as accommodation and proper housing facilities for workers are important factors in maintaining the smooth running of industrial activities," he said.

Furthermore, he said that the Kuala Tanjung port is projected to be an international logistics node integrated with the Sei Mangkei SEZ.

According to him, this integration will facilitate the flow of goods, reduce logistics costs, and open wider access for downstream Indonesian products.

Haryo conveyed that with the strengthening of port infrastructure, North Sumatra is expected to grow as a gateway for strategic trade in the western region of Indonesia.

In addition, he conveyed that cross-expension coordination is the key to realizing the success of regional development.

"The commitment to strengthening synergies between the Central Government and the Regional Government and the business world is very important, both through the provision of infrastructure, fiscal incentives, and regulatory certainty," he said.

Haryo said that the Government hopes that the development of SEZs can continue to be strengthened to become one of the important pillars in the transformation of the national economy towards Indonesia Gold 2045.

He conveyed that with the achievement of the realization of SEZ investment which had reached Rp294.4 trillion accumulatively until the first semester of 2025 and the absorption of labor as many as 187,000 people, the existence of the Sei Mangkei SEZ and the Kuala Tanjung Port were expected to further strengthen Indonesia's contribution to the global supply chain, as well as bring inclusive, equitable, and sustainable economic growth.