Jakarta. Unilever will begin construction of a new production facility at Indonesia's Sei Mangkei Special Economic Zone (SEZ) in August, making the industrial estate in North Sumatra part of the company's global value chain, a senior government official said on Monday.

Groundbreaking for the project is scheduled to be officiated by Chief Economic Minister Airlangga Hartarto, according to Susiwijono Moegiarso, chairman of the executive team of Indonesia's National Council for Special Economic Zones.

“Unilever Global has selected Sei Mangkei as one of the hubs in its global value chain. Groundbreaking will take place next month, marking the realization of an actual investment rather than merely an investment commitment,” Susiwijono said in Jakarta.

He said Unilever's decision reflects Sei Mangkei's growing importance as one of Indonesia's leading downstream industrial hubs, strategically located along the Strait of Malacca, one of the world's busiest international shipping routes.

“That strategic location has made Sei Mangkei a trusted destination within Unilever's global supply chain,” he said.

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

Located in Simalungun Regency, North Sumatra, the SEZ was developed as a major downstream processing hub for palm oil and rubber industries, while also supporting logistics, tourism, and other value-added manufacturing activities.

The approximately 2,000-hectare industrial estate is connected to the Trans-Sumatra Highway and lies about 40 kilometers from Kuala Tanjung Port and 110 kilometers from Kualanamu International Airport, providing efficient logistics access for export-oriented manufacturers.