JAKARTA: (Bernama) Indonesia has broken ground on its first melamine plant in Gresik, East Java, described by the government as the largest of its kind in the country. The event marked a key step in advancing the country’s industrial downstreaming agenda and strengthening its domestic manufacturing sector.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the project represents an effort to boost value-added output, expand employment opportunities, and enhance industrial competitiveness amid global economic challenges.
"We gather today to witness an important milestone in Indonesia’s industrial journey, namely the groundbreaking of the first and largest melamine plant in Indonesia,” he said at the groundbreaking event virtually, according to a statement issued by the ministry on Thursday (April 9).
The project is undertaken by PT GEABH Joint Technology which, according to an April 2026 report by Xinhua News Agency, is a subsidiary of China-based Sichuan Golden Elephant Chemical, making it part of foreign direct investment in Indonesia’s downstream chemical industry.
The investment, valued at about US$600 million, forms part of an integrated industrial development within the Gresik Special Economic Zone (SEZ), a government-designated area that continues to attract strategic investments.
According to the ministry, the project will process natural gas into liquid ammonia and downstream derivatives such as urea, melamine, and ammonium nitrate, and support key sectors including agriculture, chemicals, and manufacturing.
The ministry said the project is expected to strengthen Indonesia’s position in the global supply chain, while creating jobs and boosting economic activity in surrounding areas.
It said as of end-2025, cumulative investment in special economic zones nationwide reached approximately US$19.7 billion, with the Gresik SEZ contributing around US$6.1 billion, or about 31 per cent of the total, based on ministry data.
The ministry said Indonesia’s economy grew 5.11 per cent in 2025, supported by strong domestic consumption, rising investment, and solid export performance.
"Investment realisation in the fourth quarter of 2025 increased by 9.7 per cent year-on-year to US$29.2 billion, according to official data,” it said.
Airlangga said the government remains committed to ensuring a conducive investment climate by providing the necessary support and incentives for investors in the SEZ to grow sustainably. - Bernama
