Jakarta. Turkish manufacturer Evyap Sabun Indonesia has invested about $130 million in a palm oil-based chemicals production facility at Indonesia's Sei Mangkei Special Economic Zone (SEZ), underscoring the growing appeal of the country's industrial estates for export-oriented manufacturing.

The facility, which officially began operations earlier this week, marks one of the latest foreign investments in Sei Mangkei, an industrial hub specializing in downstream palm oil processing in Simalungun Regency, North Sumatra.

Rizal Edwin Manansang, secretary-general of the National Council for Special Economic Zones, said the project demonstrates the success of the government's strategy to develop competitive industrial ecosystems through cooperation between the central and regional governments, SEZ operators, and private investors.

He noted that foreign direct investment now accounts for about 73% of total investment across Indonesia's special economic zones, reflecting growing international confidence in the country's SEZ program as a platform for export-oriented manufacturing.

Since its establishment in 2012, Sei Mangkei SEZ has attracted Rp 31.8 trillion (about $1.8 billion) in cumulative investment through the first quarter of 2026 and created 14,689 jobs, according to Rizal.

Located near the strategic Strait of Malacca shipping lane, the zone offers manufacturers efficient access to major international markets across East Asia, South Asia, the Middle East, Europe, and Africa.

Evyap's parent company, Life Chemistry Evyap, supplies more than 600 customers in 55 countries. Construction of the Sei Mangkei facility began in March 2023, and after roughly three years of development, the plant is now producing a range of oleochemical products, including fatty acids, glycerin, soap noodles, and finished consumer products for global markets.

The complex comprises three production units with a combined annual capacity of 650,000 metric tons, Rizal said.

Sei Mangkei has emerged as one of Indonesia's flagship industrial zones, offering an integrated palm oil industrial cluster, strong logistics connectivity, investment incentives, and environmentally oriented infrastructure supported by biomass and biogas energy.

Saw Lee Chyan, chief executive of Life Chemistry Evyap, said the company chose Sei Mangkei because the SEZ's integrated services enabled the project to be completed more quickly than would have been possible elsewhere.

“The integrated one-stop services provided by Sei Mangkei significantly accelerated the development of our production facilities and allowed operations to commence sooner than at other locations,” Saw said in a statement.

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