PT KINRA, Chinese investors signs US$297 million investment to Sei Mangkei SEZ

PT PTPN III (Persero) subsidiary PT Kawasan Industri Nusantara (PT KINRA), signed an investment agreement with Chinese company Zhonghong Pulin Group Co., Ltd. worth US$297 million (about Rp4-5 trillion) that will focus on the development of the medical equipment industry and medical glove production in the Sei Mangkei Special Economic Zone (SEZ), Simalungun Regency, North Sumatra Province.

The signing of the agreement is a follow-up to PTPN III President Director Mohammad Abdul Ghani's visit to China in January 2025. The collaboration aims to accelerate the development of the health industry in Indonesia, create more jobs, and increase the competitiveness of the domestic industry in the medical equipment and health supplies sector.

"This investment is a strategic step by PTPN Group in supporting government policies to strengthen the domestic industrial sector, especially in the health sector which has [good] long-term prospects. With the facilities in the Sei Mangkei SEZ, we are optimistic that we can produce high-quality medical products that can meet the needs of the global market," said Ghani in a press release quoted in Jakarta on Feb. 22, 2025.

He added that the Sei Mangkei SEZ has great potential as an industrial center with facilities that support large-scale manufacturing activities.

"We are sure that this collaboration will strengthen Indonesia's position in the global market and accelerate the growth of the national health industry," said Ghani.

The Sei Mangkei SEZ is one of Indonesia's strategic industrial areas that offers various incentives and facilities to support investment. The development of the medical equipment and medical glove industry is expected to increase the attractiveness of investment in the area and strengthen the health industry ecosystem in Indonesia.

PT KINRA Director V.T. Moses Situmorang welcomed this investment, adding that the collaboration will not only improve the national economy but also contribute to domestic health sector development.

"We hope that the investment will create more jobs and accelerate the development of medical technology that is greatly needed by the world," he said.

PTPN III's investment is seen by the state-owned enterprise (SOE) as in line with the government's vision of turning the Sei Mangkei SEZ into a center for export-oriented and high-tech industrial growth.