Sei Mangke SEZ Expects Investments to Rise to Rp16 trillion in 2018

Photo: CMEA

JAKARTA (TheInsiderStories) – The Sei Mangke Special Economic Zone (SEZ) in North Sumatera expects investments value to increase to Rp15-16 trillion in 2018, after scoring a significant amount of investments until end of 2017.

As of end 2017, the Sei Mangke SEZ has attracted investment value of Rp 10.5 trillion (US$ 745 million), according to Enoh Suharto Pranoto, Secretary of the National Council for Special Economic Zones.

Pranoto made the announcement on Monday, following the signing of a number of business agreements in Sei Mangke, in a ceremony witnessed by Coordinating Minister for Economic Affairs Darmin Nasution, who is also Chairman of the National Council for Special Economic Zones.

Minister Nasution called on the board of Sei Mangke Special Economic Zones to attract more investments into the special economic zones, pointing to the potential 2,000 hectares of the Sei Mangke development, not simply the 200 hectares currently being exploited.

Among the investors signing on Monday was Hong Kong-based PT Alternatif Protein Indonesia (API). The company plans to invest $500 million, or around Rp6.5 trillion in the special economic zone.

API signed an agreement with PTPN III, a state-owned plantation company that manages the Sei Mangke Special Economic Zone, to lease 51 hectares of land, to be dedicated for the construction of a downstream plant, scheduled for January 2018. The company aims to produce fats, chitin, lauric acids and alternative protein.

Among the companies already realizing profits from their investments are PT Industri Nabati Lestari, which has invested Rp1.1 trillion in developing a palm oil mill 7-hectares in area, and PT Unilever Oleochemical Indonesia.

Construction has reached 50 per cent of completion. The company plans to produce 456,000 tons of cooking oil per annum, 27,000 tons of furan fatty acid distillate, along with 114,000 tons of stearin.

On Monday, Minister Nasution also witnessed the signing of an agreement on gas distribution between PTPN III and Pertamina Gas, a subsidiary of state-owned energy company Pertamina; a gas and sales purchase agreement between PTPN III and Pertagas Niaga; a cooperative agreement on the utilization of a dry port between PTPN III and PT KALOG; and an MoU between PTPN III and PT All Cosmos Indonesia.

Special Economic Zones are targeted for Regional Development through Nawacita, President Joko Widodo’s nine priority programs, which aim to increase national productivity and competitiveness. SEZ is targeted to absorb 632,583 workers.

SEZ is regulated under Law No. 39/2009 on Capital Investment, whose goals are to boost capital investments; to optimize industrial exports, imports and other high-value economic activities; to accelerate regional development by developing new centers of growth and balancing inter-regional development; and finally to create jobs in industrial, tourism and trade sectors.

The government has currently set up 11 SEZs. Beside Sei Mangkei and Mandalika, other SEZ includes Maloy Batuta in East Kalimantan, Sorong in West Papua, Morotai in North Maluku, Bitung in North Sulawesi, Palu in Central Sulawesi, Tanjung Lesung in Banten, Tanjung Kelayang in Belitung, Tanjung Api-Api in South Sumatra and Arun Lhokseumawe in Aceh.

Commenting on the new investment, President Director of PT Perkebunan Nusantara (PTPN) III Dasuki Amsir said ‘Sei Mangkei is open and willing to provide tax incentives for the investors’. (*)

Written by Elisa Valenta, email: