Indonesia's First Melamine Factory to be Built in Gresik SEZ with Rp10.23 Trillion Investment
We gather today to witness a significant milestone in Indonesia’s industrial journey, namely the groundbreaking of the country’s first and largest melamine factory.
Jakarta (ANTARA) -
The construction of Indonesia’s first melamine production factory has commenced in the Special Economic Zone (SEZ) in Gresik, East Java, with an investment of US$600 million, equivalent to Rp10.23 trillion.
The melamine factory project, developed by PT GEABH Joint Technology, forms part of the development of a downstream industry based on natural gas. Through this project, natural gas will be processed into liquid ammonia, which will then be developed into derivative products such as urea, melamine, and ammonium nitrate, all with high added value.
“We gather today to witness a significant milestone in Indonesia’s industrial journey, namely the groundbreaking of the first and largest melamine factory in Indonesia,” said Coordinating Minister for the Economy Airlangga Hartarto in his statement in Jakarta on Thursday.
These products are expected to support various strategic sectors, including agriculture, the chemical industry, and manufacturing, while also opening up export opportunities and strengthening Indonesia’s position in the global supply chain.
In addition, this project is anticipated to create jobs and increase economic activity in the surrounding area.
“The Indonesian government remains committed to ensuring a conducive investment climate. We will continue to provide the necessary support and incentives so that PT GEABH Joint Technology and all investors in this SEZ can grow and develop optimally,” said the Coordinating Minister.
The construction of the melamine factory is part of the integrated industrial zone development in the Gresik SEZ, which continues to demonstrate positive performance in attracting strategic investments.
By the end of 2025, the cumulative investment in SEZs nationwide is projected to reach approximately US$19.7 billion, with a significant contribution from the Gresik SEZ of US$6.1 billion, or about 31 percent of the total national SEZ investment.
This investment performance is also supported by the maintained stability of the national macroeconomy.
In 2025, the Indonesian economy recorded growth of 5.11 percent, driven by strong domestic consumption, increased investment, and solid export performance. Furthermore, investment realisation in the fourth quarter of 2025 also recorded year-on-year growth of 9.7 percent, with a value of US$29.2 billion.
As one of the national priority zones, the Gresik SEZ plays a strategic role in promoting industrial downstreaming and increasing exports.
This zone also makes a significant contribution to the regional economy, where the manufacturing sector in East Java accounts for around 31.32 percent of the economy, while in Gresik Regency, the manufacturing sector’s contribution reaches 52.58 percent of the Regional Gross Domestic Product (RGDP).
In addition to driving economic growth, the development of the Gresik SEZ also has a positive impact on community welfare. This is reflected in the decline in the unemployment rate from 8.00 percent to 5.47 percent over the last five years, as well as an increase in the Human Development Index (HDI) from 76.98 in 2021 to 79.69 in 2025.