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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

North Sumatra Backs ADB's Sei Mangkei Economic Zone Development

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • The North Sumatra provincial government fully supports the Asian Development Bank's (ADB) efforts to develop the Sei Mangkei Special Economic Zone (KEK).
  • The development of KEK Sei Mangkei is seen as a key driver for regional economic growth.
  • North Sumatra will host the 32nd IMT-GT meeting in 2026, highlighting its strategic role in regional economic cooperation.

The North Sumatra provincial government has pledged full support to the Asian Development Bank (ADB) for the development of the Sei Mangkei Special Economic Zone (KEK). Provincial Secretary Sulaiman Harahap emphasized that enhancing KEK Sei Mangkei is crucial for driving regional economic growth. He stated this during a special economic zones workshop held in Medan, a collaborative effort with the Coordinating Ministry for Economic Affairs.

The workshop is part of subregional cooperation initiatives, including the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), and the Greater Mekong Subregion (GMS). Harahap expressed hope that the workshop would strengthen KEK management capacity, improve governance, and bolster Sei Mangkei's position as a leading economic zone in North Sumatra.

Established by Government Regulation No. 29 of 2012 and operational since January 27, 2015, KEK Sei Mangkei focuses on palm oil processing, rubber processing, tourism, and logistics. With a total area of 2,002.7 hectares, it aims to attract Rp129 trillion in investment and create 83,304 jobs by 2031.

Furthermore, North Sumatra has been chosen to host the 32nd IMT-GT meeting in Medan in September 2026. Harahap noted this as recognition of the province's strategic importance in regional economic cooperation. The provincial government seeks to strengthen its synergy with the ADB to ensure the success of regional cooperation, boost economic growth, and create employment opportunities.

DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.